NatWest (NWG) bank has made a big expansion in UK wealth management by snapping up Evelyn Partners for £2.7bn.

Confirming weekend reports that NatWest was close to a deal with Evelyn’s private equity owners Permira and Warburg Pincus, the bank this morning confirmed its plan to create the UK’s leading private banking and wealth management business. 

Evelyn, a product of a merger between Tilney and Smith & Williamson in 2020, will broaden NatWest’s presence in a market where it operates through Coutts, its private banking arm.

Evelyn brings £69bn assets under management, £10bn more than the bank’s, and encompasses financial planning, discretionary investment management and direct-to-consumer platform BestInvest.

It employs 270 financial planners and 325 investment managers and is a big investor in investment companies, holding stakes in the likes of 3i Infrastructure (3IN), Ashoka India Equity (AIE) and JPMorgan Global Growth & Income (JGGI).

NatWest is reported to have beaten off Barclays with its bid. The bank returned to private ownership last year after its £45bn taxpayer bailout in the 2008 financial crisis and has seen its shares rally over 47% in the past year, although the shares slipped 1.3% to 651p this morning despite news of an additional £750m buyback.

Chief executive Paul Thwaite said: “This represents a strategically and financially compelling use of capital, enhancing income diversification and strengthening returns in a high‑growth segment, to deliver sustainable long‑term value creation.”

Evelyn boss Paul Geddes said: “We are delighted to join NatWest Group, which marks an exciting new chapter for Evelyn Partners. We both have a long-standing history as highly regarded wealth managers with a client-centric culture.”

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