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NatWest has agreed a \u00a32.7bn deal to buy Evelyn Partners, one of the UK\u2019s biggest wealth managers, in the bank\u2019s largest acquisition since it was bailed out by taxpayers in 2008.<\/p>\n
The move signals an attempt to bolster the wealth management business for the banking group, which returned to full private ownership<\/a> last year, and already owns the private bank Coutts.<\/p>\n It makes NatWest the latest among the big four banks to push more forcefully into wealth management. Rivals including HSBC, Lloyds Banking<\/a> Group and Barclays have been working to lure more fee-paying affluent customers, ensuring lenders are less reliant on income from everyday loans that are linked to the rise and fall of interest rates .<\/p>\n NatWest beat rival bidder Barclays to the takeover, according to Sky News, which first reported the deal, bringing about 2,400 Evelyn Partners employees under its wing.<\/p>\n Evelyn Partners, formerly known as Tilney Smith & Williamson, controls about \u00a369bn of client assets and offers financial planning and wealth management across the UK and Ireland.<\/p>\n The NatWest Group<\/a> chief executive, Paul Thwaite, told reporters on Monday that the deal was \u201ctransformative\u201d for the bank, which will see the private bank and wealth management division become a key \u201cgrowth engine\u201d, accounting for a fifth of the group\u2019s overall revenues from fees. \u201cSo we see the quality and mix of our earnings, change quite considerably,\u201d he added.<\/p>\n Evelyn will help NatWest capture a market that falls between the millionaire clients served by its Coutts private banking division, and the premier banking segment of their retail bank, where clients <\/a>need a minimum of \u00a3100,000 in income, savings or investments.<\/p>\n The London-based company had been seeking buyers after its private equity owners, Permira and Warburg Pincus, put it up for sale last summer. The group had already completed the sale of its professional services business to the buyout firm Apax Partners last year.<\/p>\n The company traces its roots back to 1836 when Thomas Tilney created his eponymous stock brokerage in the City of London. Tilney was bought by Permira in 2014, before acquiring the 145-year-old Glasgow-based investment company Smith & Williamson in 2019, and rebranding to its current name three years later.<\/p>\n Thwaite said he had been impressed with Evelyn\u2019s \u201cloyal\u201d and \u201cUK centric\u201d customer base, which was served through 21 regional offices across the country.<\/p>\n However, Thwaite did not rule out job cuts, saying there \u201cwill be areas of duplication\u201d that will require talks with staff. The deal is expected to complete this summer.<\/p>\n Thwaite, the chief executive of NatWest, has led the business since 2024, taking over from Alison Rose after a dispute over Nigel Farage\u2019s Coutts bank account<\/a>. He has prioritised growth in more lucrative businesses such as wealth management and private banking.<\/p>\n Thwaite has previously said the bar for buying other companies is \u201cvery high\u201d. However, NatWest has already bought much of Sainsbury\u2019s banking business<\/a> and a \u00a32.5bn residential mortgage book from Metro Bank since he took charge.<\/p>\n He said on Monday that the deal was a \u201cunique opportunity to provide financial planning, savings and investment services to more families and people across the UK\u201d.<\/p>\n