Consolidation in the UK wealth management sector is being accelerated by competition-driven fee and cost pressures, the rise of passive investing options and regulatory challenges. One of Britain’s biggest wealth managers, Evelyn Partners, is reportedly up for sale, while other significant deals in recent years have included Royal Bank of Canada’s £1.6bn acquisition of Brewin Dolphin in 2022.
Rathbones’ (RAT) £839mn purchase of Investec’s (INVP) UK wealth and investment arm two years ago, another major piece of dealmaking, should be seen in this context. The merger, as part of which Investec took a 41 per cent stake in Rathbones and 29 per cent of voting rights, has significantly scaled up the latter to north of £100bn of funds under management and administration (FUMA).