The European private equity firm Permira has set an ambitious new target to acquire one wealth management business per year over the next five years, as it eyes up the lucrative private banking and wealth management space.
Permira is currently in talks with Deutsche Bank to buy its private banking business, Liverpool-based Tilney Investment Management, which caters to those at the lower end of the wealth bracket, known as the ‘mass affluent’.
Philip Muelder, partner at Permira, said there is a huge opportunity to go after ‘orphan’ clients, in light of retrenchment at larger players such as Barclays.
He said: "I estimate there is £150 billion of assets with orphan clients who have been thrown out the door by existing providers or have just decided to leave because they weren’t looked after."
Permira, which advises funds of more than £20bn, most recently acquired UK wealth manager Bestinvest which manages around £5bn of assets, and is currently exploring "half a dozen" potential acquisitions, according to Muelder.