Deal considered

NatWest eyeing wealth manager Quilter

Wealth managers are in demand

NatWest is said to be considering a bid for wealth management firm Quilter as the bank looks to expand its presence in the sector.

A deal would be in excess of £1.4 billion and represent the big since the bank, then known as Royal Bank of Scotland, was bailed out by the taxpayer in 2008.

Quilter was formed to take over the wealth management business in the break up of Old Mutual. But it is said to lack scale in a consolidating sector.

Private equity firms including CVC, Bain Capital and BC Partners have also shown interest in the FTSE250-listed company, according to City sources. 

NatWest Group already owns the Queen’s bank, Coutts, which is also absorbing the business of Edinburgh-based private bank Adam & Co. The transfer of it banking and lending business had been due to take effect on 2 July but has been pushed back to 3 September.

Quilter is said to be on NatWest’s list of potential targets, according to the Mail on Sunday, and has also been linked to wealth management firm Tilney Smith & Williamson, which in June became Evelyn Partners.

Recent deals in the sector include the acquisition in April of Brewin Dolphin by Royal Bank of Canada for £1.6billion, and Aviva’s £385m swoop on Succession Wealth Management. Martin Gilbert’s AssetCo has acquired a number of companies in the sector, including the Scottish firms SVM Asset Management and Saracen Fund Managers.

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