Evelyn Partners Seeks £2.5bn Valuation, NatWest and RBC Among Potential Buyers

Evelyn Partners, a UK-based wealth manager, is preparing for a sale that could value the company at £2.5bn. Private equity owners Permira and Warburg Pincus have appointed Evercore to facilitate the sale process. Potential buyers include NatWest, Royal Bank of Canada, and other private equity firms and US wealth managers. The sale comes after NatWest's transition back to private ownership and the bank's strategy to grow its wealth management business.

Evelyn Partners, a UK-based wealth management firm, is gearing up for a sale that could value the company at approximately £2.5bn, according to sources cited by Financial Times [1]. The private equity owners, Permira and Warburg Pincus, have appointed investment bank Evercore to facilitate the sale process, which is expected to commence soon.

The sale initiative comes as banks, including NatWest, are increasingly looking to bolster their financial advisory services. NatWest, which recently transitioned back to private ownership, has been exploring potential acquisitions to grow its wealth management division, which includes the high-profile Coutts bank [2]. Royal Bank of Canada, which has expressed interest in expanding its wealth management footprint in the UK, is also seen as a potential bidder [3].

The sale would represent an exit for Permira from its investment in Evelyn Partners, which began with the merger of Bestinvest and Tilney in 2014. Warburg Pincus later contributed to the merger of Tilney and Smith & Williamson in 2020, after which the company was rebranded as Evelyn Partners [1]. Last year, the group shifted its focus exclusively to wealth management following the sale of its professional services arm to Apax.

Evelyn Partners has narrowed its focus to core wealth management by divesting its Smith & Williamson professional services arm and fund administration business. The firm serves more than 150,000 clients and reported £174 million in earnings last year, up 12% [2]. Other potential bidders include Raymond James, which has shown interest in the UK market, and the Ontario Teachers’ Pension Plan, which has previously taken a minority stake in Seven Investment Management [2].

The sale comes amidst regulatory reforms enabling banks and financial firms to provide unsolicited investment guidance without full client assessments, which could present both opportunities and risks for wealth managers [2]. Both NatWest and Royal Bank of Canada have refrained from commenting on the potential sale, as have Evelyn Partners, Permira, and Warburg Pincus [1, 3]. Raymond James has not responded to inquiries for comment.

References:
[1] https://finance.yahoo.com/news/evelyn-partners-targets-natwest-rbc-120152810.html
[2] https://www.marketsgroup.org/news/evelyn-partners-heads-for-2b-auction-under-pe-ownership
[3] https://www.privatebankerinternational.com/news/evelyn-partners-buyers-natwest-rbc/