Natwest set to acquire Evelyn Partners in £2.7bn deal

NatWest Group has reached an agreement to acquire Evelyn Partners, marking its first

major acquisition since returning to full private ownership last year. The deal is expected to

complete in summer 2026, subject to regulatory approval.

Evelyn Partners manages approximately £69 billion in client assets. Following the takeover, it will be combined with NatWest’s existing private banking and wealth management business to create a division overseeing around £127 billion in assets under management. Total customer assets and liabilities are expected to increase to £188 billion and the merger is projected to generate annual cost synergies of around £100 million once fully integrated. 

This will be achieved by combining Evelyn’s leading financial planning capabilities with NatWest’s existing wealth management platform, enhancing services for more than 20 million customers. NatWest has also announced a £750 million share buyback alongside the deal, aiming to ensure that capital continues to be returned to shareholders.

Despite the strategic rationale, NatWest’s share price fell by 4.5% following the announcement. Analysts at Jefferies noted that while the acquisition makes strategic sense, it could reduce earnings per share over the next few years, potentially making the stock less attractive to investors. The deal values Evelyn at approximately 15 times its 2025 earnings of

£179 million, leading some market participants to argue that NatWest may have paid a relatively high price. Concerns remain that the premium valuation may not justify long-term

profitability.

Commenting on the acquisition, Paul Thwaite, Chief Executive of NatWest Group, stated:

“Bringing together these two leading businesses creates a unique opportunity to provide financial planning, savings and investment services to more families and people across the UK. We look forward to welcoming our new clients and working with our colleagues at Evelyn Partners to transform the services our 20 million customers across the Group can expect from us.

At a time when the benefits of saving and investing are increasingly part of the national conversation, we can help customers to make more of their money through a broader range of services, as well as helping to drive growth and investment across the economy. This transaction creates the UK’s leading Private Banking and Wealth Management business, delivering the scale and capabilities needed to succeed in a market with significant growth potential. It accelerates delivery of NatWest Group’s strategy and positions us to realise our longer-term ambitions.

This represents a strategically and financially compelling use of capital, enhancing income diversification and strengthening returns in a high-growth segment, to deliver sustainable long-term value creation.”

NatWest Group has stated that the transaction will be funded from existing resources and is expected to reduce the Group’s CET1 ratio by approximately 130 basis points. This means the bank will hold less capital relative to its risk-weighted assets, a factor that has raised some concerns among shareholders.

Paul Geddes, Chief Executive of Evelyn Partners, added:

“Evelyn Partners is a leading UK wealth manager with more than 180 years of heritage. We

are proud to have grown to £69 billion of assets under management under the stewardship

of Permira, investors in the business since 2014, and Warburg Pincus, a minority investor

since 2020.

We are delighted to join NatWest Group, which marks an exciting new chapter for Evelyn

Partners. Both organisations share a long-standing history as highly regarded wealth managers with a client-centric culture.

Together, we have the scale, resources and shared vision to provide unparalleled service to our clients. We look forward to working together to build on our success and drive future growth.”