Evercore's £146m deal for Robey Warshaw: A riskier route to the Square Mile?

George Osborne's boutique firm, Robey Warshaw, sold to Evercore for £146m, with Osborne set to receive a multi-million-pound payday. The firm advised on £452bn of deals, including Comcast's acquisition of Sky and Softbank's takeover of Arm. Evercore may benefit from Robey Warshaw's expertise, but the deal is seen as a depreciating asset. The takeover is part of a trend of European and American banks acquiring UK merchant banks, with Goldman Sachs' organic approach being a more durable strategy.

Evercore Inc. has agreed to acquire Robey Warshaw, a boutique advisory firm based in London, for £146 million. The deal, expected to close in the fourth quarter of 2025, aims to bolster Evercore's presence in Europe and capitalize on the anticipated increase in deal activity driven by the European Central Bank's interest rate cuts.

Robey Warshaw, founded in 2013 by former Morgan Stanley bankers Simon Robey and Philip Apostolides, along with ex-UBS Group AG dealmaker Simon Warshaw, has advised on some of the UK's most high-profile mandates. The firm's client list includes AstraZeneca, Rio Tinto, and SABMiller. It has also played a significant role in deals such as Banco Santander SA's acquisition of Banco Sabadell SA's UK unit TSB and Comcast Corp.'s winning bid for UK broadcaster Sky Plc.

The acquisition will see Robey Warshaw's five partners, including former UK Chancellor of the Exchequer George Osborne, join Evercore. The deal is structured in two tranches, with the potential for additional payouts if certain performance targets are met.

While the acquisition is expected to be accretive to Evercore's profits in the combined company's first full year, there are risks associated with the deal. Key man risk is a significant concern, as the success of Robey Warshaw is closely tied to its founders. The firm's name and townhouse, once the home of John Adams, the second US president, will be left behind.

The acquisition is part of a broader trend of European and American banks acquiring UK merchant banks. However, Goldman Sachs' organic approach to expanding its European presence has been seen as more durable in the long run.

References:
[1] https://www.bloomberg.com/news/newsletters/2025-07-30/evercore-bets-on-key-man-rewards-with-robey-warshaw-buy
[2] https://www.investmentnews.com/mergers-acquisitions/evercore-to-buy-advisory-firm-robey-warshaw-for-196-million/261516