Investors have reacted to the news NatWest Group has this morning announced the acquisition of Evelyn Partners for \u00a32.7bn, while launching a \u00a3750m share buyback scheme. <\/p>\n
The bank has bought the wealth management business from private equity firm Permira and Warburg Pincu in a bid to diversify its fee income and increase its exposure to a \u201chigh, growth capital light segment\u201d. <\/p>\n
Evelyn Partners has almost \u00a370bn in assets under management and administration, which will combine with NatWest Group\u2019s existing private banking and wealth management business, which includes Coutts, to oversee more than \u00a3127bn of AUMA and total customer assets and liabilities of \u00a3188bn.\u00a0<\/p>\n
NatWest\u2019s savings and investments business will grow to 20 million customers after the deal with Permira and Warburg Pincu becoming 20% of group customer assets and liabilities.<\/p>\n
National newspapers have reported<\/a> this is NatWest\u2019s biggest acquisition since it was bailed out by taxpayers in the global financial crisis of 2008, and also reportedly beat rival bidders Barclays to the acquisition. Portfolio Adviser first covered NatWest\u2019s rumoured interes<\/a>t in the wealth management business \u2013 then known as Tilney Smith & Williamson \u2013 in 2022.<\/p>\n \u201cBringing together these two leading businesses creates a unique opportunity to provide financial planning, savings and investment services to more families and people across the UK,\u201d said Paul Thwaite, chief executive of NatWest Group.<\/p>\n \u201cWe look forward to welcoming our new clients and working with our colleagues at Evelyn Partners to transform the services our 20 million customers across the group can expect from us.<\/p>\n \u201cThis transaction creates the UK\u2019s leading private banking and wealth management business, delivering the scale and capabilities needed to succeed in a market with significant growth potential. It accelerates delivery of NatWest Group\u2019s strategy and positions us to realise our longer-term ambitions.\u201d<\/p>\n See also: Evelyn Partners books \u00a3600m net inflow as record \u00a32.6bn comes in<\/a><\/p>\n Meanwhile, Paul Geddes, chief executive of Evelyn Partners, added: \u201cEvelyn Partners is a leading UK wealth manager with more than 180 years of heritage. We are proud to have grown to \u00a369bn of AUM, under the stewardship of Permira, investors in the business since 2014, and Warburg Pincus, a minority investor since 2020.<\/p>\n