Erin Sims, financial services senior analyst, at RSM UK, comments on NatWest’s £2.7bn acquisition of Evelyn Partners:

“NatWest Group has completed its £2.7bn acquisition of Evelyn Partners, following a competitive auction that saw off rival bids from Barclays and RBC. The transaction represents NatWest’s largest takeover since its 2008 bailout, and marks a decisive strategic move under CEO Paul Thwaite to accelerate the bank’s focus on scaling wealth management. With Evelyn’s £67bn of client assets now under the NatWest umbrella, the bank has materially expanded its presence in the fast growing affluent and high net worth wealth segments, building on the existing scale and reputation of the Coutts franchise.

“Bringing Evelyn into the group strengthens NatWest’s ambition to deliver a more integrated, end to end wealth offering across its retail, commercial and private banking client base. Evelyn’s advice led platform, strong brand and adviser base complement NatWest’s deep customer relationships and expanding private banking capabilities. The FCA’s focus on closing the advice gap further increases the strategic importance of scalable, hybrid advice models, an area where the combined business is better positioned to compete.

“This transaction reinforces continued consolidation shaping the UK wealth management sector, as firms scale to manage regulatory costs, talent scarcity and investment demands in digital and hybrid advice. A combined NatWest–Evelyn, creating among the largest bank-owned wealth managers, raises competitive pressure on other players in the market. The move also heightens structural challenges for mid sized IFAs and regional advisers that lack the scale, technology or succession planning to remain independent as large integrated platforms grow.

“More broadly, the deal is likely to accelerate further M&A as banks, consolidators and private equity backed groups race to build multi segment propositions from mass affluent to ultra-high net worth clients.”

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