Loss-making wealth manager Duncan Lawrie has been broken up and sold to rivals Brewin Dolphin and Arbuthnot Latham, as its parent company Camellia leaves the private banking industry.
Brewin Dolphin has agreed to acquire Duncan Lawrie's asset management business for an initial cash payment of £25.5m, while Arbuthnot Latham will buy Duncan Lawrie's private banking loan portfolio for £42.7m in cash.
Duncan Lawrie Asset Management (DLAM) has around 1,000 client relationships and manages funds of £735m. The acquisition will swell Brewin Dolphin’s total funds under management to £36.1bn.
As part of the agreement, DLAM’s 11 investment managers and eight investment support staff will join Brewin Dolphin's team.
Commenting on the deal, Brewin Dolphin CEO David Nicol said: "DLAM is a high quality investment management business and the acquisition is an excellent fit for us given the shared business philosophy centered on a personalized approach to client service."
The loan portfolio acquired by Arbuthnot Banking carried 83 customer accounts with balances of roughly £44.9m as of October 2015.
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Camellia, the Aim-listed agriculture and engineering company that owned the Belgravia wealth manager, is still in talks to offload the last part of Duncan Lawrie’s operations, an Isle of Man offshore trust services office.
The acquisition, which is still subject to certain regulatory approvals, is expected to take place during the first half of 2017.