42 43 Finance Monthly. Finance Monthly. Beyond the Deal Beyond the Deal NATWEST GROUP HAS AGREED TO ACQUIRE EVELYN PARTNERS FROM FUNDS ADVISED BY PERMIRA AND WARBURG PINCUS FOR AN ENTERPRISE VALUE OF £2.7 BILLION. Deal Overview The transaction will combine Evelyn Partners with NatWest Group’s existing Private Banking & Wealth Management (PBWM) business, creating the UK’s largest integrated private banking and wealth management platform. Alongside the acquisition, NatWest Group announced a £750 million share buyback, underscoring its continued capital return strategy. Following completion, the combined PBWM business will oversee approximately £127 billion of assets under management and administration (AUMA) and £188 billion of total customer assets and liabilities, serving a customer base of more than 20 million across the UK. Strategic Rationale The acquisition accelerates delivery of NatWest Group’s strategy to diversify income streams by increasing exposure to fee-based, capital-light businesses. The transaction is expected to increase fee income by approximately 20% pre-revenue synergies and position PBWM as around 20% of group customer assets and liabilities. Evelyn Partners brings a fully integrated wealth management model spanning financial planning, discretionary investment management and its direct-toconsumer platform BestInvest. The business generated £179 million of EBITDA in 2025, implying a valuation multiple of 9.7x EV/EBITDA including target run-rate cost synergies. Financial Advisers (Buyer): Joint Lead Financial Adviser Joint Lead Financial Adviser Financial Adviser and Corporate Broker ADVISORS TO THE TRANSACTION Value Creation and Synergies NatWest Group expects the combination to generate estimated annual run-rate cost synergies of approximately £100 million, equivalent to around 10% of the combined PBWM cost base, with costs to achieve of approximately £150 million. Additional revenue synergies are expected through the distribution of Evelyn Partners’ investment and planning solutions across NatWest Group’s national customer base. The transaction is expected to be accretive to NatWest Group’s growth and Return on Tangible Equity in the first year of ownership and to deliver returns exceeding those achievable through an equivalent share buyback. Transaction Structure and Funding The acquisition will be funded from existing resources and is expected to reduce NatWest Group’s CET1 ratio by approximately 130 basis points. The group will remain well capitalised following completion and the announced £750 million share buyback. The ordinary dividend payout ratio of around 50% of attributable profits remains unchanged. Completion of the transaction is subject to customary regulatory approvals and is currently expected in summer 2026. Transaction Context The acquisition reflects renewed consolidation within UK wealth management, as large banking groups seek to scale advisory platforms, deepen client relationships and capture long-term growth driven by demographic shifts, increased savings and rising demand for holistic financial planning. For NatWest Group, the transaction represents a strategically and financially compelling deployment of capital, strengthening its competitive position in one of the UK’s most attractive and resilient financial services segments. Sector: Banking / Wealth Management Transaction Type: Strategic Acquisition Deal Value: £2.7 Billion Enterprise Value Deal Status: Announced (Subject to regulatory approvals) Expected Completion: Summer 2026
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