NatWest Set to Make Its Biggest Acquisition in Over a Decade with £2.5bn Evelyn Partners Deal
A Major Banking Move After Years of Recovery
In what marks a significant milestone for British banking, NatWest Group is on the verge of completing its largest corporate acquisition since the dark days of the 2008 financial crisis. The bank is in advanced discussions to purchase Evelyn Partners, a prominent wealth management firm, for an estimated £2.5 billion to £3 billion. This weekend’s negotiations represent a turning point for NatWest, which only recently returned to full private ownership after being rescued by taxpayers during the banking crisis sixteen years ago. The deal, if finalized, would signal the bank’s confidence in its recovery and its ambition to expand into lucrative sectors of the financial services market. An official announcement could come as early as next week, marking a new chapter for both organizations and potentially reshaping the landscape of wealth management in the United Kingdom.
Beating Out the Competition
The race to acquire Evelyn Partners has been intense, with several major financial institutions vying for the opportunity to add this prestigious wealth manager to their portfolio. NatWest appears to have emerged victorious after seeing off competition from Barclays, one of its primary rivals in the British banking sector. Following a fresh round of offers submitted just last week, NatWest’s bid proved more attractive to Evelyn’s private equity owners. Barclays, despite its keen interest in the acquisition, reportedly stepped back after recognizing the price NatWest was willing to pay. Royal Bank of Canada had also been mentioned in connection with a potential bid, though it remains unclear whether they actually submitted a formal offer. The competitive nature of this auction underscores the value that major financial institutions see in Evelyn Partners and the wealth management sector more broadly. For NatWest, winning this bidding war represents not just a financial commitment but a strategic statement about where the bank sees its future growth opportunities.
Strategic Fit and Future Vision
The acquisition of Evelyn Partners aligns perfectly with the strategic priorities outlined by Paul Thwaite, NatWest’s chief executive, who took the helm in 2023. Since assuming leadership, Thwaite has initiated a simplification drive aimed at streamlining the bank’s operations and focusing on key growth areas, with wealth management identified as a critical sector for expansion. Industry analysts have noted that bringing Evelyn into the NatWest fold makes excellent strategic sense, particularly for strengthening the bank’s Coutts division—its prestigious private banking arm—and enhancing services for affluent customers. Evelyn Partners, formerly known as Tilney Smith & Williamson, manages nearly £65 billion in assets and serves thousands of clients across the United Kingdom, making it a significant player in the wealth management industry. While £2.5 billion to £3 billion might seem like a substantial sum, it’s actually quite modest when viewed against NatWest’s impressive market capitalization of nearly £52 billion. The bank’s financial health is evidently strong, with shares having surged by approximately 50% over the past year, providing a solid foundation from which to pursue this ambitious acquisition.
The Booming Wealth Management Sector
The timing of this acquisition reflects broader trends sweeping through the wealth management industry in Britain and beyond. Demographic shifts, combined with government and industry initiatives to encourage Britons to engage in longer-term saving, investment, and comprehensive financial planning, have fueled remarkable growth across the sector in recent years. This growth trajectory shows no signs of slowing down, making wealth management an increasingly attractive area for major financial institutions. The Evelyn Partners sale is just one example of a wave of corporate activity currently transforming the sector. Canaccord Genuity’s wealth division is also currently up for sale and could command a price exceeding £1 billion, demonstrating the appetite among buyers for established wealth management businesses with solid client bases and substantial assets under management. For banks like NatWest, acquiring such businesses offers a way to quickly scale their wealth management capabilities rather than building them organically over many years. The affluent and high-net-worth client segments represent particularly attractive markets, as these customers typically require sophisticated financial services and generate higher profit margins than standard retail banking customers.
A Familiar Face Returns Home
An interesting subplot to this acquisition story involves Evelyn Partners’ chief executive, Paul Geddes, who could be making a homecoming of sorts if he remains with the business following the NatWest takeover. Geddes has a significant history with the bank, having worked for what was then called Royal Bank of Scotland before the financial crisis devastated the banking sector. During his previous tenure, he ran the bank’s insurance division, which included well-known consumer brands such as Direct Line and Churchill. In a notable achievement, Geddes orchestrated the spinoff of these insurance operations from the main high street lending business at a time when the bank was under majority government ownership following its taxpayer bailout. His deep understanding of NatWest’s culture and operations, combined with his proven track record in the wealth management sector, could make him a valuable asset in integrating Evelyn Partners into the NatWest Group. Whether he chooses to stay on or pursue other opportunities remains to be seen, but his experience straddling both organizations positions him uniquely to facilitate a smooth transition.
The Journey to This Moment
Understanding this acquisition requires looking back at the histories of the companies involved. Evelyn Partners itself is the product of a 2020 merger between two respected firms—Tilney and Smith & Williamson—brought together by private equity firms Permira and Warburg Pincus. This combination created a wealth management powerhouse with a comprehensive range of services and a substantial client base. Last year, the company’s professional services division was sold to another buyout firm, Apax Partners, streamlining the business and focusing it more squarely on wealth management. The current auction of the wealth management business, being orchestrated by investment bankers at Evercore, represents the private equity owners’ exit strategy after building value in the combined entity. For NatWest, this deal represents a remarkable turnaround from the desperate days of 2008, when it required a massive government bailout to survive. The bank’s return to full private ownership last year closed that difficult chapter, and this acquisition announces its return as a major player capable of making significant strategic investments. As both NatWest and Barclays have declined to comment on the ongoing negotiations, and Permira has yet to respond to requests for comment, the financial world watches with interest to see how this transformative deal will reshape Britain’s wealth management landscape in the years to come.
