NatWest Closes £2.7bn Deal for Evelyn Partners Wealth Manager Amid Push into High-Net-Worth Market
NatWest has agreed to purchase Evelyn Partners, a leading UK wealth manager, in a deal valued at £2.7 billion. The acquisition, which is set to be completed this summer, marks NatWest's largest investment since its bailout by taxpayers in 2008 and signals the bank's aggressive push into the high-net-worth market.
Evelyn Partners, formerly known as Tilney Smith & Williamson, has around £69 billion of client assets under management and offers a range of financial planning and wealth management services across the UK and Ireland. The company has been a target for several bidders, with Barclays ultimately losing out to NatWest in the deal.
The acquisition will help NatWest tap into a lucrative market that falls between its Coutts private banking division, which serves millionaire clients, and its retail bank, where customers require a minimum of £100,000 in income or savings. Evelyn Partners' "loyal" and "UK-centric" customer base, served through 21 regional offices across the country, will bring a valuable asset to NatWest's wealth management business.
NatWest chief executive Paul Thwaite described the deal as "transformative," saying it would result in the private bank and wealth management division becoming a key growth engine for the group, driving a 20% rise in overall revenues from fees. However, he did not rule out job cuts, citing areas of duplication that will require talks with staff.
The acquisition is part of NatWest's broader push into more lucrative businesses, including wealth management and private banking. Since taking over as CEO last year, Thwaite has prioritized growth in these sectors, having previously acquired a £2.5 billion residential mortgage book from Metro Bank.
NatWest returned to full private ownership last May after 17 years as a taxpayer-backed bank. The deal, which came at a £10 billion loss for taxpayers, marked the state's recouping of only about £35 billion of its costs due to NatWest's shares languishing below average bailout levels.
The acquisition has been met with skepticism by some analysts, who point out that the deal economics rely heavily on synergy delivery to justify the price. Shore Capital equity analyst Gary Greenwood said, "While expanding in wealth management is strategically logical, we remain cautious on the deal economics."
NatWest has agreed to purchase Evelyn Partners, a leading UK wealth manager, in a deal valued at £2.7 billion. The acquisition, which is set to be completed this summer, marks NatWest's largest investment since its bailout by taxpayers in 2008 and signals the bank's aggressive push into the high-net-worth market.
Evelyn Partners, formerly known as Tilney Smith & Williamson, has around £69 billion of client assets under management and offers a range of financial planning and wealth management services across the UK and Ireland. The company has been a target for several bidders, with Barclays ultimately losing out to NatWest in the deal.
The acquisition will help NatWest tap into a lucrative market that falls between its Coutts private banking division, which serves millionaire clients, and its retail bank, where customers require a minimum of £100,000 in income or savings. Evelyn Partners' "loyal" and "UK-centric" customer base, served through 21 regional offices across the country, will bring a valuable asset to NatWest's wealth management business.
NatWest chief executive Paul Thwaite described the deal as "transformative," saying it would result in the private bank and wealth management division becoming a key growth engine for the group, driving a 20% rise in overall revenues from fees. However, he did not rule out job cuts, citing areas of duplication that will require talks with staff.
The acquisition is part of NatWest's broader push into more lucrative businesses, including wealth management and private banking. Since taking over as CEO last year, Thwaite has prioritized growth in these sectors, having previously acquired a £2.5 billion residential mortgage book from Metro Bank.
NatWest returned to full private ownership last May after 17 years as a taxpayer-backed bank. The deal, which came at a £10 billion loss for taxpayers, marked the state's recouping of only about £35 billion of its costs due to NatWest's shares languishing below average bailout levels.
The acquisition has been met with skepticism by some analysts, who point out that the deal economics rely heavily on synergy delivery to justify the price. Shore Capital equity analyst Gary Greenwood said, "While expanding in wealth management is strategically logical, we remain cautious on the deal economics."
anyway i guess it's good for them if they can make it work and all that but 20% rise in revenues from fees sounds like a pretty big ask to me idk if natwest has the cash flow to back it up 
also i'm curious who's gonna lose their job because of this acquisition 
maybe paul thwaite should've just said "no" to the deal instead of trying to spin it as "transformative" 
just saw that NatWest is buying Evelyn Partners for £2.7bn... gotta say, it's a bold move by NatWest to expand into high-net-worth market 
. they're definitely playing to win with this one 
. but i'm not sure if it's all sunshine and rainbows... i mean, there are analysts who think the deal is a bit overpriced 
. fingers crossed that NatWest can pull it off without too many job losses 
. anyway, it'll be interesting to see how this plays out...
. What do you think? 
. But seriously, I'm all for the push into high-net-worth markets – it's about time they made some real money 
. I'll be keeping an eye on this one 
.
. Wish 'em luck! 
NatWest just scored the deal of a lifetime! £2.7bn is like, crazy money 
! Of course, some analysts are skeptical about the deal economics, but I'm like, "Meh, bring it on!" 
. It's time to get that private banking and wealth management business firing on all cylinders 
!
.
! The fact that Evelyn Partners has 21 regional offices across the country is also super valuable, like, it's not just about the money, but also about the people and the network 
!
It's like they're trying to say, "Hey, we're not just a bank, we're a financial powerhouse!" 
. But hey, at least they're trying to make the most of it, right? Only time will tell if Evelyn Partners' "loyal" and "UK-centric" customer base will really be worth the investment 
.
they're gonna tap into this super lucrative high-net-worth market and drive 20% revenue growth from fees 
i mean, paul thwaite described it as "transformative" so yeah idc what the haters say lol Natwest is on fire 
. £2.7 billion for Evelyn Partners? That's just ridiculous! I mean, what's next, a £10 trillion buyout of the whole high-net-worth market? 
It's all about growth and profit at NatWest, but what about the little guys? The average Joe struggling to make ends meet is still stuck in the dark ages 
.
. The analysts are just drinking the Kool-Aid, and I'm not buying it 
.
. We need real change, not just more wheeling-dealing and corporate jargon 
.
anyway i'm excited to see how this plays out and if natwest can really make some magic happen 