NatWest Group is poised to acquire Evelyn Partners, a prominent wealth management firm, in a deal valued between £2.5bn and £3bn. The move, reported by Sky News on Saturday, would represent NatWest’s largest corporate acquisition since its bailout by taxpayers in 2008.
Advanced talks are underway to purchase Evelyn Partners from its current private equity owners, Permira and Warburg Pincus. NatWest reportedly overcame competition from Barclays in recent bidding rounds, with an announcement potentially arriving as early as next week.
Evelyn Partners manages approximately £65bn in client assets, offering a comprehensive suite of wealth management and financial planning services across the UK and Ireland. The acquisition aligns with NatWest chief executive Paul Thwaite’s strategic priorities of simplification and growth within higher-return sectors, particularly wealth and affluent banking, since assuming his role in 2023.
Analysts suggest the deal would complement NatWest’s existing Coutts private banking arm, strengthening its services for high-net-worth and mass affluent customers. Despite the substantial transaction size, a price tag below £3bn is considered modest given NatWest’s market capitalization of nearly £52bn, and the bank’s share price has increased by close to 50 percent over the past year.
Barclays, initially a strong contender, withdrew from the bidding process after NatWest increased its offer. Royal Bank of Canada had also expressed interest, though it remains unclear whether a final offer was submitted.
Evelyn Partners was formed through the 2020 merger of Tilney and Smith & Williamson, orchestrated by Permira and Warburg Pincus. The professional services division of the combined entity was later sold to Apax Partners last year.
Evercore is advising on the sale, which is occurring amidst increased merger and acquisition activity within the UK wealth management sector, as banks and asset managers seek to expand their scale and capture long-term savings growth.
NatWest and Barclays both declined to comment on the ongoing negotiations.
