Permira is to acquire the regional businesses of Tilney in Birmingham, Edinburgh, Glasgow and Liverpool from Deutsche Bank. This follows the acquisition of Bestinvest in November. Subject to regulatory approval of both acquisitions, Tilney and Bestinvest will be combined to create a standalone UK wealth manager.
Permira announces that a company controlled by its funds is to acquire the regional businesses of Tilney* in Birmingham, Edinburgh, Glasgow and Liverpool from Deutsche Bank.
This follows the acquisition of Bestinvest, which was announced on 6 November, 2013. Subject to regulatory approval of both acquisitions, Tilney and Bestinvest will be combined to create a leading standalone UK wealth manager with c. £9 billion of assets under management, advice and administration. The acquisition of the Tilney regional businesses is expected to complete in the second quarter of 2014.
Tilney and Bestinvest are highly complementary businesses. The combined group will have a nationwide presence and service clients across the wealth spectrum, from self-directed investors utilising Bestinvest’s state-of-the-art online investment service through to high net worth individuals and their families requiring discretionary investment management and wealth planning.
Founded in 1836, Tilney is a long-established private client investment manager with a reputation for offering highly personalised services to wealthy individuals and their families across the UK. Additionally Tilney has strong relationships providing investment management services to UK financial advisers. It has £3.5 billion of assets managed or advised by its regional businesses, the majority of which are discretionary portfolios serviced by 58 relationship managers.
Following completion of the transaction and as part of the enlarged Bestinvest group, the respected Tilney brand will be re-introduced in the discretionary investment management market, complementing the strength of the Bestinvest brand.
Peter Hall, Chief Executive of Bestinvest, commented: “This is an exciting development. The enlarged group will be a major standalone UK wealth manager, with nearly £9 billion of assets. We will be completely committed to offering clients the highest standards of professional service and investment expertise. The fit of the two businesses is compelling and together we will be able to help clients from all parts of the UK and from across the wealth spectrum, whether they want to manage their own investments or for us to manage their portfolios for them.”
Philip Muelder, Partner at Permira, added: “The UK wealth management industry has strong growth characteristics but is currently very fragmented. In combining Tilney and Bestinvest, we will bring together two highly regarded firms to create a truly market leading, UK-wide standalone wealth manager that will offer a broad and complementary range of services. The combined business will benefit from the advantages of increased scale and full national coverage and will be ideally positioned to capitalise on the opportunities that are emerging from recent regulatory changes.”
Tom Slocock, Head of Wealth Management in the U.K. for DeAWM, said: “I am pleased for Tilney and its clients that Bestinvest and the Permira funds will support the business through the next phase of its development. Deutsche Asset & Wealth Management will continue to provide wealth management services from our London office.”
Permira were advised by Fenchurch Advisory and Freshfields Bruckhaus Deringer. Deutsche Asset & Wealth Management was advised by Deutsche Bank’s in-house M&A team and Clifford Chance.