Charlie Ring comments in Wealth Briefing on a major financial services transaction between NatWest and Evelyn Partners
Major banking and Insurance company NatWest Group has announced that it is buying wealth management business Evelyn Partners a "reminder of how important wealth management is to some of the UK’s top lenders."
Buying Evelyn Partners means that private banking and wealth management at NatWest will make up about 20 per cent of group customer assets and liabilities, diversifying its revenue streams – a point that shareholders may come to appreciate.
The acquisition of wealth management firms may offer banks more predictable, fee-based income, as indicated by NatWest's acquisition of Evelyn Partners.
What does this deal mean for market consolidation, and for mid-market firms investing in wealth management?
Charlie Ring, Partner in our Financial Services Regulation & Funds team, speaks with Wealth Briefing on the acquisition:
This acquisition underlines how seriously banks are re-entering the advice market. Whilst the 15x EBITDA headline will grab attention, it reflects scale, quality and bank-specific synergies rather than a blanket reset of valuations.
"That said, the deal is likely to accelerate consolidation as banks and well-capitalised buyers compete for high-quality advice businesses - with a knock-on effect for mid-market and smaller firms as valuation expectations rise and competitive pressure intensifies.
Read the full article in Wealth Briefing here.
