Philip Muelder, a partner at Permira, said the firm’s acquisition of Tilney – for an undisclosed sum – will create a new, standalone wealth manager in the UK, subject to FCA approval of the two acquisitions.
The new entity will have £9bn in assets under management and a national presence, thanks to Tilney’s offices in Liverpool, Glasgow, Edinburgh and Birmingham and Bestinvest’s London focus.
It is not known how the new business will be branded, but Mr Muelder said that, following completion of the transaction, the Tilney brand will be “re-introduced in the discretionary investment management market” as part of a larger Bestinvest group designed to complement the “strength of the Bestinvest brand”.
Mr Muelder said the combined group will have a nationwide presence and service clients across the wealth spectrum, from self-directed investors using Bestinvest’s online investment service through to high-net-worth individuals and their families requiring discretionary investment management and wealth planning.
He added: “The UK wealth management industry has strong growth characteristics, but it is very fragmented. In combining Tilney and Bestinvest, we will bring together two highly regarded firms to create a UK-wide, standalone wealth manager that will offer a broad and complementary range of services.”
Peter Hall, chief executive of Bestinvest, said: “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.”
Background
* The merger follows Permira’s acquisition of Bestinvest, which was announced on 6 November last year.
* Tilney, which was founded in 1836, has £3.5bn in assets under management and advice.
* The acquisition of the Tilney regional businesses from current owner Deutsche Bank is expected to be completed in the second quarter of 2014.
