New wealth management giant created

Towry sold to Tilney Bestinvest in £600 million deal

Tilney TowryPalamon Capital Partners has sold Towry, one of Britain’s biggest independent wealth managers, to Tilney Bestinvest for £600 million.

Towry has more than £9 billion of client assets, 85% of which are managed under discretionary investment mandates.

It employs more than 900 staff across 21 offices, including Aberdeen, Edinburgh and Glasgow, and the combination with Tilney will create a substantial wealth management firm for affluent and high net worth clients.

Daan Knottenbelt, partner at Palamon, said, “It has been a tremendous experience to have executed a transformational growth strategy that saw Towry develop from a single office in Marlow with £5 million of revenue to become a leading national wealth manager with £120 million of revenue and more than £9 billion of client assets.

“This is another highly successful Palamon investment that demonstrates the power of our thesis-led strategy to identify, and invest into, long-term growth trends.  We are delighted that the sale of Towry will deliver another break-out return of 13x for our investors.  Our thanks go to the Towry management team and Board, who have executed the M&A plan to perfection and fulfilled the potential of this remarkable investment.”

Rob Devey, CEO at Towry, commented, “This sale is the culmination of our hard work over the last two years to complete the transformation of Towry to make it one of the national leaders in the UK wealth management sector.

“It has been a pleasure to have worked closely with Palamon over this period, during which we more than doubled the EBITDA of the business whilst driving strong improvements in client satisfaction. Towry and Tilney Bestinvest are an excellent fit with both firms having highly skilled teams that provide top quality financial planning and investment management services to clients. Moving forwards the combined business will be able to offer an even wider range of services for clients and career opportunities for employees in all parts of the UK.”

Philip Muelder, partner and co-head of the financial services team at Permira, added: “Since acquiring Bestinvest only two years ago with assets and revenues of £5 billion and £39 million, the Permira Funds have backed Peter Hall and his team to build one of the largest and fastest growing players in the UK wealth management market.

“The business has achieved this through a series of highly synergistic acquisitions and strong organic growth, which will be further enhanced by its recently launched joint venture with Saga. With over £20 billion of assets and £200 million of revenues once Towry is acquired, the group will have the scale to continue to invest to enhance its range of services for clients and will be well positioned to take advantage of the increasing demand for advice which presents significant growth opportunities.”

Photo (click on image to enlarge): Rob Devey and Peter Hall

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