Investors have reacted to the news NatWest Group has this morning announced the acquisition of Evelyn Partners for £2.7bn, while launching a £750m share buyback scheme.
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 “high, growth capital light segment”.
Evelyn Partners has almost £70bn in assets under management and administration, which will combine with NatWest Group’s existing private banking and wealth management business, which includes Coutts, to oversee more than £127bn of AUMA and total customer assets and liabilities of £188bn.
NatWest’s 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.
National newspapers have reported this is NatWest’s 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’s rumoured interest in the wealth management business – then known as Tilney Smith & Williamson – in 2022.
“Bringing 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,” said Paul Thwaite, chief executive of NatWest Group.
“We 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.
“This transaction creates the UK’s 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’s strategy and positions us to realise our longer-term ambitions.”
See also: Evelyn Partners books £600m net inflow as record £2.6bn comes in
Meanwhile, Paul Geddes, chief executive of Evelyn Partners, added: “Evelyn Partners is a leading UK wealth manager with more than 180 years of heritage. We are proud to have grown to £69bn of AUM, under the stewardship of Permira, investors in the business since 2014, and Warburg Pincus, a minority investor since 2020.
“We are delighted to join NatWest Group, which marks an exciting new chapter for Evelyn Partners. We both have a long-standing history as highly regarded wealth managers with a client-centric culture.
“Together, we have the scale, resources, and shared vision to provide unparalleled service to our clients. We look forward to working together to build on our success and drive future growth.”
Funds advised by Permira originally invested in Bestinvest in 2014 and through a number of acquisitions, including Tilney, Towry and Smith & Williamson, created the combined group now known as Evelyn Partners. Under the Permira fund’s majority ownership, assets under management increased from around £5bn to £69bn, the firm said. Warburg Pincus became a minority investor in the company upon the acquisition of Smith & Williamson in 2020.
See also: Evelyn Partners sells fund solutions business to Thesis
Chris Pell, managing director of Permira, commented further of the Evelyn Partner’s progress: “When we invested in 2014, we believed UK wealth management would increasingly reward scale, advice-led models and institutional investment standards. Over more than a decade, Evelyn Partners has been built deliberately around that conviction.
“The investment exemplifies our approach to long-term value creation: patient ownership, close partnership with management and continuous investment in people, technology and platform capabilities. Today’s agreement with NatWest is a strong endorsement of the quality of the platform, the client proposition, Paul’s leadership and all the highly talented employees at Evelyn Partners.”
Following the £750m share buyback announced today, NatWest Group expects its next share buyback announcement to be at its H1 2027 results.The acquisition, which is subject to regulatory approval, is expected to complete in the summer of 2026.
Reaction
Natwest’s share price has dropped 5.5% in morning trading following the announcement.
Ben Yearsley, investment consultant at Fairview Investing, commented: “I thought it was telling that NatWest announced a further share buyback alongside it! Trying to sweeten the market maybe? It seems a full price but if they can integrate with Coutts they’ve arguably got a full spectrum wealth management business.”
Victoria Hicks, chief executive officer at financial advice and wealth management M&A consultancy firm Melo, said banks are seeking growth through these acquisitions: “This transaction reflects a structural shift in financial planning M&A, as the banks who have been watching from the sidelines start to make their move.
“As advice firms reach institutional scale, governance maturity and earnings quality, they evolve from consolidators into strategic infrastructure for banks seeking growth through diversification.
“The real prize, though, is the ability to combine that advice capability with banking platforms serving 20 million customers and potentially address the UK’s advice gap by embedding high-quality financial planning at genuine scale.”
