NatWest Buys Evelyn Partners for £2.7 Billion

NatWest, a big bank, is buying Evelyn Partners, a company that helps people with their money. The deal is for £2.7 billion. This will help NatWest grow its services for wealthy customers.
By Newsroom | Business, Finance |

The banking group NatWest is set to acquire the wealth manager Evelyn Partners in a deal valued at £2.7 billion. This move signals a strategic push by NatWest to expand its wealth management capabilities, a sector known for its steady revenue streams derived from regular fees rather than the interest rate fluctuations that affect traditional lending. The acquisition is expected to combine Evelyn Partners' significant assets under management with NatWest's existing private banking and wealth management operations, aiming to create a leading entity in the UK financial services market. The transaction also involves a £750 million share buyback by NatWest.

Deal Background and Rationale

NatWest, which returned to full private ownership recently, has prioritized growth in profitable areas such as wealth and private banking. The acquisition of Evelyn Partners, previously owned by private equity firms Permira and Warburg Pincus, is a key part of this strategy. Evelyn Partners offers a comprehensive suite of services, including financial planning, investment management, and a direct-to-consumer platform called BestInvest.

Read More: UK Economy Grew a Little at End of 2025

  • Strategic Alignment: The purchase aims to integrate Evelyn Partners' £69 billion in assets under management (AUMA) with NatWest's existing £59 billion AUMA, which includes its private bank Coutts.

  • Market Competition: This move places NatWest in more direct competition with other major banks like HSBC and Lloyds, which are also actively expanding their wealth management divisions to attract and retain high-value clients and stabilize earnings.

  • Previous Sales: Notably, Evelyn Partners' professional services division was sold to Apax Partners last year, a move that preceded its current sale.

Key Actors and Financials

The deal sees Permira and Warburg Pincus, Evelyn Partners' private equity owners since 2014, exit their investment. NatWest Group is the acquiring entity, with UBS, Ardea Partners International LLP, and BofA Securities acting as financial advisers. The reported value of the transaction is £2.7 billion. Alongside the acquisition, NatWest announced a £750 million share buyback.

Read More: Retirees Need Cars But Worry About Money

NatWest to buy wealth manager Evelyn Partners for £2.7bn - 1

  • Evelyn Partners: Integrated wealth management services, including financial planning, discretionary investment management, and BestInvest platform. Grew from £5 billion to £63 billion in client assets since Permira's initial investment in 2014.

  • NatWest Group: Seeking to bolster its wealth management and private banking arms. Already owns Coutts. Completed the sale of its professional services business last year.

The acquisition reflects a broader trend among major banks to accelerate their expansion in wealth management. This sector is attractive due to its recurring revenue model, which is generally more stable and less capital-intensive than traditional lending, especially in environments marked by fluctuating interest rates.

  • Recurring Revenue: Wealth management offers a predictable income stream based on fees, providing a cushion against market volatility.

  • Client Acquisition: Banks aim to attract and retain affluent customers, securing long-term relationships and diversified revenue.

  • Competitive Landscape: The deal intensifies competition in the UK wealth sector, with institutions like Lloyds having recently consolidated ownership of their wealth joint ventures.

Transaction Details and Advisors

NatWest successfully outbid rival Barclays, which was also reportedly interested in acquiring Evelyn Partners. The deal is expected to be transformative for NatWest's wealth division.

Read More: Sir Jim Ratcliffe Says Sorry for Immigration Comments

"We are delighted to join NatWest Group, which marks an exciting new chapter for Evelyn Partners." - Statement from Evelyn Partners

"The transaction will strengthen NatWest Group’s capital generation and it will remain well-capitalised." - Statement from NatWest Group

  • Financial Advisers to NatWest: UBS, Ardea Partners International LLP, BofA Securities.

  • Sellers: Permira and Warburg Pincus.

Conclusion and Next Steps

The acquisition of Evelyn Partners by NatWest represents a significant strategic move to solidify its position in the UK wealth management market. By integrating Evelyn's substantial assets and expertise, NatWest aims to create a leading private banking and wealth management business. This expansion aligns with industry-wide efforts by major banks to diversify revenue streams and capture a larger share of the affluent client market. The transaction is also accompanied by a share buyback program, indicating NatWest's confidence in its financial position. The integration process and the ultimate impact on market dynamics will be closely observed.

Read More: India's Market Rules Made Simpler to Help Businesses and Investors

Sources:

Read More: Arc Raiders Game Sells 14 Million Copies, Much More Than Expected

Frequently Asked Questions

Q: What is happening?
NatWest is buying Evelyn Partners.
Q: How much does it cost?
It costs £2.7 billion.
Q: Why is NatWest doing this?
NatWest wants to become a bigger company for managing money for rich people.