NatWest Group Announces Major Acquisition
NatWest Group has reached an agreement to acquire Evelyn Partners, one of the United Kingdom's largest wealth management firms, for an enterprise value of £2.7 billion. The deal, announced on February 9, 2026, represents NatWest's most significant acquisition since its 2008 government bailout. The transaction is subject to customary regulatory approvals and is anticipated to close in the summer of 2026.
Strategic Rationale and Market Impact
The acquisition is set to create the UK's leading Private Banking and Wealth Management (PBWM) business, a key strategic objective for NatWest. By integrating Evelyn Partners' operations, NatWest aims to transform its savings and investment offerings for its 20 million customers. This move is expected to accelerate NatWest Group's strategy by diversifying income and increasing fee income by approximately 20% before revenue synergies. The combined entity will oversee more than £127 billion in Assets Under Management and Administration (AUMA), comprising Evelyn Partners' £69 billion and NatWest's existing £59 billion. Total Customer Assets and Liabilities are projected to reach £188 billion.
Evelyn Partners: A Profile
Evelyn Partners, with a heritage spanning over 180 years, was formed in 2020 through the merger of Tilney and Smith & Williamson. The firm offers a comprehensive suite of wealth management services, including:
- Financial planning
- Discretionary investment management
- A direct-to-consumer platform, BestInvest
The company, which employs around 2,400 people, was acquired by NatWest from funds advised by Permira and Warburg Pincus.
Leadership Statements and Financial Outlook
Paul Thwaite, Chief Executive of NatWest Group, emphasized the transformative nature of the deal, stating it creates a 'unique opportunity' to provide financial planning, savings, and investment services to more people across the UK. Paul Geddes, Chief Executive of Evelyn Partners, expressed delight in joining NatWest Group, highlighting the shared client-centric culture and the opportunity for greater scale and resources. The acquisition is expected to generate estimated annual run-rate cost synergies of approximately £100 million, with costs to achieve these synergies estimated at £150 million. NatWest also announced a £750 million share buyback alongside the acquisition. The deal follows NatWest reportedly outbidding rival Barclays.
5 Comments
Bermudez
It's good to see NatWest aiming to become a leader in private banking, potentially offering more comprehensive services. However, the success hinges on seamless integration and ensuring existing retail customers don't feel neglected or see their service quality decline.
Coccinella
The move to increase fee income and AUMA is financially sound for NatWest's growth prospects. Yet, the £150 million cost to achieve synergies suggests a challenging transition period, and the actual benefits for shareholders might take longer to materialize than initially projected.
Bella Ciao
While expanding into wealth management is a clear strategic play for NatWest to diversify income, the £2.7 billion price tag and the complexity of integrating two large firms pose significant risks that need careful management to avoid past pitfalls.
Muchacha
Acquiring Evelyn Partners could indeed create a dominant UK wealth management player, which is positive for market presence. Nevertheless, the memory of NatWest's 2008 bailout means public scrutiny will be high, demanding transparency and prudence in this large-scale venture.
Mariposa
A £750m share buyback alongside this? Strong signal of financial health and shareholder value!