Wealth management for rich individuals has boomed in the City
(Picture: Didier Madoc-Jones of GMJ / City of London Corporation’)BREWIN Dolphin, one of the oldest names in the City, is being sold to Royal Bank of Canada in £1.6 billion deal.
That’s just the latest flurry of activity in the growing wealth management space, as firms flock to advise retired baby boomers on how to manage their money.
Brewin, a feature of the Square Mile since 1762, has assets of £50 billion under management and 80,000 clients.
It moved from stockbroking to focus on wealth management a few years ago and has offices dotted across richer areas of the UK.
RBC has offered 515p a share, more than 60% above Brewin’s price before the deal.
RBC will merge Brewin with its existing UK wealth arm, a small player at the moment.
Last year US finance group Raymond James bought Charles Stanley, a Brewin rival, for £279 million.
Peel Hunt said in a note to clients: “Whilst initially Brewin will be managed as a standalone subsidiary, over time it is expected that the two brands will be combined. There is no explicit detail on cost synergies, but there will be
some overlap and therefore some limited headcount reductions are expected.”
The broker added: “This is, in our view, attractive price for Brewins, particularly given current market conditions.”
Brewin CEO Robin Beer said: “As part of RBC we would be able to provide our clients with a broader range of products and services.”
More mainstream banks, notably Lloyds, are also planning to expand in the wealth management sector.
RBC, which was founded in 1864, employs 88,000 worldwide.
RBC’s Doug Guzman said: “The UK is a key growth market for RBC and Brewin Dolphin provides us with an exceptional platform to significantly transform our wealth management business in the region. By combining two highly complementary businesses, we will increase the depth and breadth of our services and position the combined business as a premier integrated wealth management provider to private and institutional clients.”
