Besides NatWest, the London-based firm is said to have also garnered interest from a number of private equity firms, including CVC Capital Partners, Bain Capital and BC Partners, in past weeks.
Quilter, which is valued at £1.4bn, is said to lack the size and investment to compete with bigger players and banks.
The acquisition, if finalised, would be the biggest by the British banking group since its bailout during the financial crisis in 2008.
NatWest already owns wealth management and private banking firm Coutts. The news comes as the firm looks to further bolster its wealth business.
The deal, if finalised, is expected to help NatWest extend its wealth management services to affluent households with over £100,000 to invest.
The private equity firms are also actively pursuing the deal for Quilter although the discussions are currently in the initial phase, a separate report by WSTPOST stated.
Recent developments at Quilter
This May, Quilter named Glyn Barker as its new chairman. Current Quilter Ruth Markland will continue in his position until Barker’s appointment becomes effective on 7 September 2022.
In January Quilter Cheviot’s Irish wealth management entity, Quilter Cheviot Europe, revealed plans to establish integrated investment management and financial planning offering across its office network.
In December last year, Utmost Group finalised its takeover of Quilter International after the initial announcement in April 2021.