Private equity powerhouses Permira and Warburg Pincus are advancing plans to exit their £2.5 billion ($3.36 billion) stake in Evelyn Partners, one of the UK’s largest wealth managers, marking a pivotal moment in European financial services M&A. The potential sale follows a strategic streamlining of Evelyn’s operations and reflects broader trends in wealth management consolidation and private equity exit strategies.
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Deal Rationale and Strategic Context
Evelyn Partners, formed through the 2020 merger of Tilney and Smith & Williamson, has grown its assets under management (AUM) from £5 billion in 2014 to £63 billion under Permira’s ownership[1][10]. The firm’s adjusted EBITDA reached £174.3 million in 2024, up 11.8% year-on-year, driven by strong net inflows and investment performance[28][35]. This financial resilience positions it as an attractive target amid rising valuations for wealth management platforms.
The planned sale aligns with Permira’s 2023 decision to transfer its Evelyn stake into a continuation fund, signaling a shift toward exit strategies after shelving earlier IPO plans[43][47]. Recent divestitures of non-core assets—including the £700 million sale of its Professional Services division to Apax Partners and the Fund Solutions business to Thesis—have sharpened Evelyn’s focus on pure-play wealth management[2][32][38]. These moves aim to enhance appeal to potential acquirers seeking scale in advisory services.
Potential Buyers and Market Dynamics
Advisers have reportedly engaged to prepare for a sale process later in 2025, with interest anticipated from:
- UK banks: Seeking to bolster wealth management capabilities amid sector consolidation[15][17]
- Global private equity firms: Leveraging dry powder to acquire high-margin advisory businesses[18][20]
- North American financial institutions: Expanding cross-border footprints in European wealth management[14][17]
European financial services M&A has surged in 2025, with deal volumes reaching record levels as firms pursue scale and digital transformation[15][17]. Wealth management remains a priority sector, driven by demand for integrated financial planning and investment solutions[15][18].
Company Background and Ownership Structure
Evelyn Partners operates as a dual-brand entity, combining Bestinvest’s digital investment platform with Tilney’s advisory services and Smith & Williamson’s professional expertise. The firm’s leadership includes CEO Paul Geddes, who has overseen the integration of multiple acquisitions since 2014[1][40].
Ownership is split between Permira (56%) and Warburg Pincus, with remaining shares held by employees and former executives[1][59]. The continuation fund structure allows Permira to retain exposure while preparing for exit, a common strategy in private equity[43][47].
Strategic Divestitures and Operational Streamlining
Recent asset sales highlight Evelyn’s focus on core competencies:
| Asset | Buyer | Valuation | Completion |
|---|---|---|---|
| Professional Services | Apax Partners | £700 million | Q1 2025 |
| Fund Solutions | Thesis Holdings | Undisclosed | H1 2025 |
These transactions rebranded the Professional Services division as S&W, reviving the Smith & Williamson legacy, and transferred 75 staff to Thesis[32][38]. The moves underscore Evelyn’s commitment to specialization in wealth management amid competitive pressures[16][18].
Industry Implications and Market Trends
The potential sale reflects three key trends in European financial services:
1. Wealth Management Consolidation
Private equity firms are driving consolidation in wealth management, with £25 billion in enterprise value expected to come to market over the next three years[15][18]. Evelyn’s scale and dual expertise in financial planning and investment management position it as a prime target for strategic acquirers seeking to enhance fee-based revenue streams[15][17].
2. Cross-Border M&A Appetite
European cross-border M&A surged 34% in 2024, with wealth management attracting interest from North American buyers[14][17]. A potential sale to a US financial institution could mirror deals like EQT’s $3 billion acquisition of Neogov, highlighting the appeal of European platforms with strong operational infrastructure[22][48].
3. Regulatory and Valuation Pressures
While European regulators remain cautious, US deregulation under the new administration may pressure UK banks to compete more aggressively for advisory assets[17][19]. Evelyn’s valuation multiples reflect confidence in wealth management’s resilience amid market volatility[28][35].
Leadership and Governance
Recent leadership changes include the departure of Permira partner Philip Muelder from Evelyn’s board, signaling a transition toward exit-focused governance[30]. The firm’s management team, including CEO Paul Geddes and CFO Scott Kirk, will play critical roles in navigating the sale process[42][62].
Conclusion and Outlook
A successful sale of Evelyn Partners would validate private equity’s strategy of building scale through mergers and selective divestitures. The transaction could catalyze further consolidation in European wealth management, particularly if UK banks or global PE firms emerge as acquirers. While regulatory hurdles and valuation negotiations remain challenges, Evelyn’s financial performance and market position make it a compelling target in a sector primed for growth.
Sources
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