NatWest Group has agreed to acquire Evelyn Partners for GBP 2.7 billion, including debt, to expand its wealth management operations in the UK.
The UK-based bank announced the acquisition on 9 February 2026. Evelyn Partners operates as one of Britain's largest wealth management and professional services firms, providing investment management, financial planning, and accounting services.
The transaction represents NatWest's largest acquisition since its 2008 government bailout during the global financial crisis. The deal aligns with the bank's strategy, focusing on domestic retail and commercial banking, contrasting with its pre-crisis international expansion.
Financial impact and market reaction
The acquisition increases NatWest's total assets under management and administration to GBP 127 billion, compared to GBP 56 billion held by the bank independently as of September 2025. NatWest expects the transaction to generate approximately GBP 100 million in annual cost savings. The bank announced a GBP 750 million share buyback programme alongside the deal.
NatWest shares declined 4.5% following the announcement. Analysts at Jefferies stated the acquisition addresses strategic objectives but involves substantial valuation that may reduce earnings per share by 2% through to 2028 compared to scenarios without the transaction.
The deal will reduce NatWest's Common Equity Tier 1 ratio by approximately 130 basis points. The transaction will be funded from existing resources. NatWest reported a CET1 ratio of 14.2% as of September 2025.
Sale process attracted multiple bidders
Private equity firms Permira and Warburg Pincus initiated a sale process for Evelyn Partners in 2025. Barclays, Lloyds Banking Group, and Royal Bank of Canada also expressed interest in acquiring the firm, according to market reports.
Permira has owned Evelyn Partners, formerly known as Tilney Smith & Williamson, since 2014. The private equity firm funded the company's expansion into wealth management through acquisitions and organic growth. Evelyn Partners was formed through the 2022 merger of Tilney and Smith & Williamson.
RBC Capital Markets analysts noted the acquisition addresses gaps in NatWest's affluent wealth offering, though the transaction represents a departure from the bank's historically conservative capital deployment approach.
The UK wealth management market includes competitors such as St James's Place, Quilter, Rathbones Group, and wealth divisions of major banks, including Barclays and HSBC. International firms, including UBS, Julius Baer, and Morgan Stanley, also operate wealth management services in the UK.
Transaction completion remains subject to regulatory approvals from the Financial Conduct Authority and Prudential Regulation Authority.
