Rathbones and Investec have joined forces to create the UK’s largest discretionary wealth manager with around £100 billion in assets under management.
The two will merge in an all-share deal that will see Investec’s UK wealth management business become a part of an enlarged Rathbones entity. The new group will offer services under the Rathbones brand.
Investec Group will be issued with new Rathbones shares and have 41.25% interest in the newly enlarged group. Rathbones exiting shareholders will have an economic interest in the remaining 58.75%. Rathbones will continue to trade on the premium section of the London Stock Exchange.
It is hoped the deal will generate significant economies of scale and help attract the best talent in the industry. The new entity is expected to have 23 location across the UK.
“Bringing Rathbones together with Investec W&I UK will create the UK’s leading discretionary wealth manager with approximately £100 billion of funds under management and administration,” said Clive Bannister, Chair of Rathbones.
“This transaction not only presents a compelling strategic and financial rationale, but also accelerates Rathbones’ growth strategy. Operating at scale allows the group to offer an even more attractive proposition to clients and colleagues, supporting future growth and creating significant value for Rathbones’ shareholders.”
Subject to regulator approval, the deal is expected to be completed in early Q4 2023.