Oaktree Acquires Close Brothers Asset Management, Creating Independent Wealth Business

Close Brothers Asset Management has become an independent wealth business following its sale to Oaktree. The sale allows the company to focus on its core wealth management business and provides new investment opportunities. Oaktree is a global investment manager with over $120 billion in assets under management. The deal is expected to enhance the company's wealth management capabilities and provide growth opportunities.

Close Brothers Asset Management (CBAM), the wealth management arm of Close Brothers, has recently undergone a significant transformation following its acquisition by global investment manager Oaktree Capital Management [1]. This deal, valued at up to £200 million, has enabled CBAM to operate as a standalone and independent business, focusing on its core wealth management services while unlocking new investment opportunities.

Oaktree, with over $120 billion in assets under management [2], has a deep understanding of CBAM's business and has been observing its progress for several years [1]. The firm has expressed its commitment to preserving CBAM's client-centric culture while investing in its service capabilities and technology to enhance its wealth management offerings.

The transaction, which is expected to be completed in early 2025 pending regulatory approvals, includes £172 million in cash, with £146 million payable on completion and a dividend of around £26 million [1]. CBAM will also receive £28 million in contingent deferred consideration in the form of preference shares.

Following the acquisition, CBAM will move to a new head office and take on a new name, reflecting its newfound independence and growth under Oaktree ownership. Eddy Reynolds, chief executive of CBAM, expressed his excitement about the partnership, stating that Oaktree's backing would enable the company to deliver its investment and growth plans and create the best place in the UK for wealth professionals and their clients [1].

Mike Biggs, Close Brothers' chair, confirmed that the board had unanimously approved the transaction, which is expected to simplify the Close Brothers group and allow the company to focus on its core lending business. This move is also expected to accelerate CBAM's growth strategy, with the potential to become a leading UK wealth manager under Oaktree ownership [1].

Sources:
[1] The Trade News. (2023, January 10). Oaktree to pick up Close Brothers Asset Management in 200 million deal. https://www.thetradenews.com/oaktree-to-pick-up-close-brothers-asset-management-in-200-million-deal/
[2] Oaktree Capital Management. (n.d.). About Oaktree. https://www.oaktreecapital.com/about/