Wealth manager Kingswood has issued new shares to fund manager Pollen Street Capital, under a convertible preference share agreement.

Following the first tranche of the debt to equity arrangement worth up to £80 million and announced in September, a subsidiary of Pollen Street Capital (HSQ Investment) owns just over 2 percent of Kingswood.

Pollen Street helped fund Kingswood’s September acquisition of WFI Financial, for up to £14 million, by way of a six-month secured bridge finance facility with 5 percent interest.

Pollen Street has now opted to capitalise this into convertible preference shares.