Will a Wealth Management SPAC Succeed? While the structure is appealing, RIA sellers often focus more on who the partner is going to be and what they bring to the table in terms of peer groups and resources. With a SPAC, a lot of those are unknown.
Last month, Kingswood Acquisition Corp., a special purpose acquisition corporation, or SPAC, sponsored by the owners of British wealth management firm Kingswood Group and a sister company to advisory firm Kingswood U.S., announced that it had raised $115 million in its initial public offering. Kingswood plans to use the proceeds from the public markets to invest in U.S.-based wealth management firms, bringing a new source of capital and a new option to registered investment advisors considering a sale.