Permira, a European private equity firm, announced its agreement to acquire the regional businesses of Tilney in Birmingham, Edinburgh, Glasgow and Liverpool from Deutsche Asset and Wealth Management (A&W).
According to the private equity firm, it will combine the regional businesses of Tilney with Bestinvest to create one of the largest wealth managers in the United Kingdom with £9 billion assets under management. Permira purchased Bestinvest with £5.1 billion assets under management last year.
At this year's Sohn Investment Conference, Dan Sundheim, the founder and CIO of D1 Capital Partners, spoke with John Collison, the co-founder of Stripe. Q1 2021 hedge fund letters, conferences and more D1 manages $20 billion. Of this, $10 billion is invested in fast-growing private businesses such as Stripe. Stripe is currently valued at around Read More
Highly complementary businesses
According to Permira, Bestinvest and Tilney’s businesses highly complement each other. The combined company will have a nationwide presence and service clients across the wealth spectrum. Bestinvest has a state-of-the-art online investment service. Tilney has a reputation for offering highly personalized services to wealthy individuals and their families in the United Kingdom. It has also strong relationships providing investment management services to the financial advisers in the country. Its regional businesses have £3.5 assets under management.
Permira: major standalone UK wealth manager
In a statement, Philip Muelder, a partner at Permira said, “The UK wealth management industry has strong growth characteristics but is currently very fragmented. In combining Tilney and Bestinvest, we will bring together two highly regarded firms to create a truly market leading, UK-wide standalone wealth manager that will offer a broad and complementary range of services. The combined business will benefit from the advantages of increased scale and full national coverage and will be ideally positioned to capitalize on the opportunities that are emerging from recent regulatory changes.”
On the other hand, Bestinvest CEO Peter Hall said, “The enlarged group will be a major standalone UK wealth manager…The fit of the two business is compelling and together we will be able to help clients from all parts of UK, and from across the wealth spectrum…”
Permira plans to re-introduce the Tilney brand in the discretionary investment market as part of the enlarged Bestinvest group. Deutsche A&W will retain Tilney’s office in London.
Data from Private Asset Managers Online shows that total amount of private assets under management in the United Kingdom was £50 billion last year.