NatWest Group has agreed to purchase UK wealth manager Evelyn Partners from Permira and Warburg Pincus-advised funds in a deal valued at £2.7bn ($3.6bn).  

The combined business will oversee £127bn in assets under management and administration. 

Evelyn Partners manages £69bn in client assets.  

Its operations include financial planning, discretionary investment management, and the consumer platform BestInvest.  

Permira first invested in Bestinvest in 2014, and Warburg Pincus has been a minority investor since 2020. 

The deal is expected to increase NatWest’s fee income by roughly 20% before revenue synergies are realised and will see its private banking and wealth management segment account for approximately a fifth of the group’s customer assets and liabilities. 

The merged entity will be led by Emma Crystal, chief executive of NatWest’s Private Banking and Wealth Management division.  

It is anticipated that the deal could reach £100m annual run-rate cost synergies, equivalent to around 10% of the combined unit’s cost base, with one-time costs to achieve these savings estimated at £150m. 

NatWest Group CEO Paul Thwaite said: “Bringing together these two leading businesses creates a unique opportunity to provide financial planning, savings and investment services to more families and people across the UK.  

“We look forward to welcoming our new clients and working with our colleagues at Evelyn Partners to transform the services our 20 million customers across the Group can expect from us.” 

NatWest expects the deal will be “accretive” to its growth and return on tangible equity within the first year after completion.  

However, the transaction is projected to reduce its CET1 capital ratio by about 130 basis points.  

The deal is due to be completed in summer 2026, contingent on regulatory approvals. NatWest will fund the deal using its existing resources.   

Paul Geddes, who took over charge as chief executive of Evelyn Partners in 2023, added: “We are delighted to join NatWest Group, which marks an exciting new chapter for Evelyn Partners. We both have a long-standing history as highly regarded wealth managers with a client-centric culture. 

“Together, we have the scale, resources, and shared vision to provide unparalleled service to our clients. We look forward to working together to build on our success and drive future growth.” 

Last year, Evelyn Partners completed the sale of its fund solutions business, managed by Evelyn Partners Fund Solutions (EPFL), to Thesis Holdings.