NatWest has agreed a £2.7 billion deal to acquire Evelyn Partners in its biggest corporate takeover since the banking group was bailed out by taxpayers during the financial crisis, and its most significant acquisition since it returned to full private ownership.
The purchase of the wealth manager from private equity firms Permira and Warburg Pincus, combined with NatWest’s existing Coutts business, will create the UK’s largest private banking and wealth management business. The enlarged group will oversee £127 billion of assets under management and administration.
The deal, which NatWest said would deliver annual run-rate synergies of around £100 million, raises the prospect of job losses over time, although the Evelyn Partners brand will be retained initially. Around 150,000 wealthy UK households will see responsibility for their investments move under the NatWest umbrella.
Edinburgh-based NatWest has beaten rival bidders including Barclays and Royal Bank of Canada for the acquisition, as Britain’s biggest lenders tighten their focus on wealth management to offset an expected drop in interest rates as central bank rates begin to fall. Rivals HSBC and Lloyds have already expanded their presence in the sector.
Paul Thwaite, chief executive of NatWest, said the transaction would strengthen the bank’s ability to support savers and investors. “At a time when the benefits of saving and investing are becoming part of the national conversation, we can help customers make the most of their money with a wide range of services, while helping to drive growth and investment across the economy,” he said.
The acquisition is NatWest’s biggest since its purchase of ABN Amro in 2008, when the group was known as Royal Bank of Scotland. That deal contributed to the crisis that led to a £45.5 billion taxpayer bailout. NatWest was returned to full private ownership in May last year, after the government sold its remaining shares at a net loss of £10.5 billion.
Evelyn Partners was sold last August following the spin-off of its professional services arm from Apax Partners. Formed from the 2020 merger of Tilney and Smith & Williamson, the business employed around 2,400 people by the end of 2024 and oversees £63 billion of client assets. It is headed from 2023 by Paul Geddes, a former Royal Bank of Scotland executive who previously oversaw the stock market listing of Direct Line.
Thwaite, 54, was appointed chief executive in February 2024 after Dame Alison Rose stepped down following a row over the closure of Nigel Farage’s Coutts bank account. He has repeatedly emphasized that there is a “very high bar” for acquisitions.
Analysts expressed surprise that NatWest emerged as the winner. Benjamin Toms of RBC Capital Markets said: “We are surprised that NatWest has come out on top, given the way the chief executive has managed the bank.
Permira has been owned by Evelyn Partners since 2014, supporting its expansion into a major wealth manager. NatWest said the transaction would be funded from existing facilities and would reduce its first-tier equity ratio by 130 basis points.
Since taking over, Thwaite has already overseen the purchase of major bank Sainsbury’s and the purchase of a £2.5 billion loan book from Metro Bank, insisting any deal must be financially and strategically responsible.
The transaction comes amid a wider shake-up in the wealth management sector. Canada’s Royal Bank acquired Brewin Dolphin for £1.6 billion in 2022, while American firm Raymond James bought Charles Stanley for £279 million. An initial public offering for Evelyn Partners was also under consideration, raising questions about the health of the UK flotation market.
Alongside the deal announcement, NatWest unveiled a new £750 million share buyback ahead of its full-year results later this week. Shares in the bank fell nearly 3 percent in early trading as investors weighed the impact of a big future earnings call.
