In a significant development within the UK's financial sector, Barclays and NatWest are poised to launch rival bids for Evelyn Partners, a major wealth management firm valued at approximately £2 billion. Sky News has reported that both high street banking giants intend to submit formal offers on Thursday, as an auction process orchestrated by advisers nears its conclusion.
Banking Titans Compete for Wealth Management Dominance
The impending bids mark a strategic move by Barclays and NatWest to enhance their positions in the competitive wealth management landscape. Both banks are expected to offer sums exceeding £2 billion for Evelyn Partners, which manages around £65 billion in assets. While initial uncertainty lingered on Wednesday regarding whether offers would reach this threshold, insiders have expressed confidence that the transaction will ultimately settle at or near the £2 billion mark.
Expanding Wealth Management Footprints
For Barclays, this acquisition represents an opportunity to bolster its existing wealth management services, aligning with its broader strategy to diversify revenue streams. NatWest, through its prestigious Coutts division, already holds a strong presence in this sector, and acquiring Evelyn Partners would further solidify its market position. The move underscores both banks' commitment to expanding their high-net-worth client offerings amid growing demand for personalised financial services.
Potential Bidders and Market Context
Speculation has also surfaced linking Royal Bank of Canada, the owner of Brewin Dolphin, to the auction. However, it remains unclear whether RBC will proceed with a formal bid, adding an element of suspense to the proceedings. This sale occurs against a backdrop of sustained corporate activity in the wealth management industry, with other assets like Canaccord Genuity's wealth arm also on the market, potentially fetching over £1 billion.
Evelyn Partners emerged from the 2020 merger of Tilney and Smith & Williamson, both backed by private equity firms Permira and Warburg Pincus. Last year, the company's professional services arm was sold to Apax Partners, streamlining its focus on wealth management. The current auction is being managed by bankers at Evercore, highlighting the high-stakes nature of the transaction.
Barclays and NatWest have declined to comment on the matter, maintaining a veil of secrecy as the deadline approaches. This bidding war reflects the intense competition among UK banks to capitalise on the lucrative wealth management sector, driven by increasing asset values and client demand for sophisticated financial planning.
