The banking giant NatWest seals a £2.7 billion acquisition deal
NatWest has successfully acquired wealth manager Evelyn Partners in a deal valued at £2.7 billion, purchased from private equity owners Permira and Warburg Pincus, reports BritPanorama.
The move comes as the FTSE-100 lender, which returned to private ownership last year, aims to bolster its position in the wealth management sector. This acquisition is expected to enhance NatWest’s exposure to high-growth, capital-light segments, thereby increasing fee income by approximately 20 percent.
Evelyn Partners operates multiple offices across the UK, including major cities such as Birmingham, Manchester, and Liverpool. The acquisition is particularly significant as it places NatWest in competition with rival Barclays, which has also been seeking to strengthen its presence in the wealth management arena.
NatWest’s existing wealth management footprint through its Coutts arm provides a foundational advantage. In contrast, Barclays has focused on expanding its private banking operations, which reported £697 million in total income in the first half of 2025.
“This transaction creates the UK’s leading Private Banking and Wealth Management business,” said NatWest chief Paul Thwaite. He emphasized the scale and capabilities needed for success within a market that holds significant growth potential.
Financially, Evelyn Partners generated £179 million in earnings last year, overseeing approximately £69 billion in assets under management. The combined total with NatWest’s assets will exceed £127 billion, significantly expanding the group’s capabilities in the sector.
Amidst rising competition, major UK banks have intensified wealth management expansions due to the sector’s stability and less capital-intensive nature compared to traditional lending, which is more susceptible to interest rate fluctuations. In line with these trends, Lloyds acquired full ownership of Schroders Personal Wealth and has pursued further expansions this year.
Meanwhile, HSBC has announced ambitions to double its assets under management to £100 billion over the coming five years, positioning itself among the top five wealth managers. The bank has also committed significant investment to establish a new wealth centre in central London.
Alongside the acquisition of Evelyn Partners, NatWest has initiated a £750 million share buyback program, signaling its intent to enhance shareholder returns in the near term.
NatWest will likely detail its next buyback programme alongside its 2027 half-year results, as the bank continues to leverage its expanded capabilities in the wealth management sector.
This development indicates a strategic shift among major UK banks towards capitalizing on the resilient wealth management sector, reflecting a broader trend towards stable, fee-based revenue streams in a fluctuating economic landscape.
