NatWest Group, one of the UK's largest banks, has agreed to acquire wealth manager Evelyn Partners in a cash and share deal valued at £2.7 billion. The acquisition aims to create what the bank describes as the leading private banking and wealth management business in the UK, enhancing its savings and investment propositions for over 20 million personal and business customers.

Strategic Expansion into High-Growth Sector

The deal will markedly increase NatWest's exposure to the 'high growth, capital light' wealth management segment. Evelyn Partners, which manages £69 billion in assets under management and administration (AUMA), generated £179 million in EBITDA in 2025, underscoring its profitability and scale.

Paul Thwaite, chief executive of NatWest Group, highlighted the synergies: "Bringing together these two leading businesses creates a unique opportunity to provide financial planning, savings and investment services to more families and people across the UK." The transaction is expected to close in summer 2026, pending regulatory approvals.

Capital Return to Shareholders

In parallel with the acquisition announcement, NatWest revealed a £750 million share buyback programme, continuing its commitment to returning capital to shareholders amid strong financial performance.

Market Context

The FTSE 100 opened higher, up 43 points to 10,412, reflecting positive sentiment in UK equities. This deal comes amid broader sector activity, including a strategic partnership between Schroders and Apollo announced today to develop innovative investment solutions blending public and private markets.

Evelyn Partners maintains a notable presence in regional hubs such as Aberdeen, with an office on Union Street, potentially strengthening NatWest's footprint beyond major cities.

Implications for UK Wealth Management

• Scale Boost: Combined entity to oversee substantial AUMA, rivaling top players in private banking.
• Revenue Diversification: Shift towards recurring fee income from advisory services.
• Client Reach: Enhanced access to sophisticated wealth products for mass affluent customers.

This acquisition signals NatWest's aggressive push into wealth management, a resilient sector amid economic uncertainties, positioning it for sustained growth in a competitive landscape.