NatWest Seals £2.7bn Takeover of Evelyn Partners
NatWest has agreed to a landmark £2.7bn deal to acquire Evelyn Partners, one of the United Kingdom's largest wealth managers. This acquisition represents the banking group's most significant purchase since it was rescued by taxpayers in 2008 during the financial crisis.
Strategic Expansion into Wealth Management
The move underscores NatWest's strategic push to strengthen its wealth management division, following its return to full private ownership in May of last year, 17 years after the bailout. The bank already operates the prestigious private bank Coutts, and this deal will integrate approximately 2,400 Evelyn Partners employees into its operations.
According to initial reports from Sky News, NatWest outbid rival Barclays to secure the takeover. Evelyn Partners, formerly known as Tilney Smith & Williamson, manages around £69bn in client assets and provides comprehensive financial planning and wealth management services across the UK and Ireland.
Historical Context and Ownership Changes
Evelyn Partners had been on the market since last summer when its private equity owners, Permira and Warburg Pincus, initiated a sale process. The company previously sold its professional services business to the buyout firm Apax Partners in the preceding year.
The firm's origins date back to 1836, when Thomas Tilney established his eponymous stock brokerage in the City of London. Permira acquired Tilney in 2014, and it later merged with the 145-year-old Glasgow-based investment company Smith & Williamson in 2019, rebranding to Evelyn Partners three years thereafter.
Leadership and Growth Priorities
Paul Thwaite, who became NatWest's chief executive in 2024 after succeeding Alison Rose amid controversy over Nigel Farage's Coutts account, has emphasized growth in high-margin sectors like wealth management and private banking. Although Thwaite has previously stated that the threshold for acquisitions is "very high", NatWest has already completed significant purchases under his leadership, including much of Sainsbury's banking business and a £2.5bn residential mortgage portfolio from Metro Bank.
On Monday, Thwaite commented that the Evelyn Partners deal presents a "unique opportunity to provide financial planning, savings and investment services to more families and people across the UK".
Financial Implications and Market Reaction
NatWest's return to private ownership last May concluded a 17-year period following its £45bn taxpayer rescue, when it was known as Royal Bank of Scotland. The privatisation resulted in an estimated £10bn loss for taxpayers, as the state recovered only about £35bn due to NatWest's shares trading below the average 502p price paid during the bailout.
Paul Geddes, chief executive of Evelyn Partners since 2023, brings extensive experience from a 15-year tenure at RBS, where he managed its insurance arm, including brands like Direct Line and Churchill.
In related news, NatWest, set to announce its full-year results on Friday, also revealed plans to return £750m to shareholders through a share buy-back programme. However, the bank's stock experienced a decline of over 5% in early trading on Monday, positioning it among the top fallers on the FTSE 100 index.
