£2.5bn Takeover Battle for Evelyn Partners

Introduction to the Takeover

Two of Britain’s major banks are engaged in a £2.5bn takeover battle over Evelyn Partners, the asset management group. The bidders, including Barclays and NatWest Group, were informed last week that they had progressed to the second round of the Evelyn auction.

Bidders and Their Interests

The Royal Bank of Canada is also reportedly poised to buy Evelyn, while several private equity firms have made offers for the company. Lloyds Banking Group was considering an offer for Evelyn, although its current interest is unclear.

Strategic Significance for Bidders

For Barclays and NatWest, acquiring Evelyn would strengthen their presence in a division where they already have a strong foothold, with NatWest’s Coutts division being a notable example. NatWest’s chief executive, Paul Thwaite, has expressed the bank’s willingness to consider acquisitions that are reasonably priced and strategically attractive, especially as the bank prepares to go fully private this year.

Evelyn Partners’ Current Status

As of June, Evelyn had assets under management of £64.6 billion, reflecting the growing demand across the wealth management sector. The company is currently owned by private equity firms Permira and Warburg Pincus, who merged their respective firms Tilney and Smith & Williamson in 2020. Last year, Evelyn’s professional services division was sold to buyout firm Apax Partners.

The Auction Process

The current auction is being handled by bankers at Evercore. Canaccord Genuity’s asset arm is also at stake and could fetch a price of over £1bn. Barclays and NatWest have declined to comment on the matter.