Close Brothers Asset Management Sold to Oaktree Capital

Oaktree Capital has completed the acquisition of Close Brothers Asset Management, providing investment and expertise to bolster the business as a standalone entity. Close Brothers Asset Management will continue to operate under its current name for a short period before adopting a new moniker. The deal aims to support the business's growth strategy and enhance its premium wealth management services for clients.

Oaktree Capital, a renowned US private equity firm, has recently completed the acquisition of Close Brothers Asset Management (CBAM), a significant player in the UK wealth management sector [1]. The deal, valued at approximately £200 million, aims to bolster CBAM's growth strategy and enhance its premium wealth management services for clients [2].

CBAM, the wealth management arm of Close Brothers, will continue to operate under its current name for a brief period before adopting a new moniker [2]. The acquisition will enable CBAM to function as a standalone and independent business, allowing for greater agility and new opportunities [2].

The deal, which was first announced last September, includes £172 million in cash, with £146 million payable on completion and a £26 million dividend paid by CBAM to its parent [1]. In addition, the acquisition includes £28 million in preference shares [1].

Oaktree Capital has been an active player in the UK wealth sector for over a decade, with previous investments in financial advice firm Ascot Lloyd in 2013 [1]. The acquisition of CBAM marks Oaktree's continued commitment to the UK market and its confidence in the growth potential of the wealth management sector.

CBAM's management team will remain in place, with Eddy Reynolds, the chief executive, expressing his excitement about working with Oaktree to achieve the company's ambitions [2]. Mike Biggs, Close Brothers' chair, also confirmed the unanimous approval of the transaction by the board [2].

The acquisition is expected to be completed in early 2025, pending customary regulatory approvals [2].

References:

[1] Citywire. (2023, January 25). Oaktree seals deal for Close Brothers wealth arm. https://citywire.com/new-model-adviser/news/oaktree-seals-deal-for-close-brothers-wealth-arm/a2460783

[2] The Trade News. (2023, January 25). Oaktree to pick up Close Brothers Asset Management in £200m deal. https://www.thetradenews.com/oaktree-to-pick-up-close-brothers-asset-management-in-200-million-deal/