High street banking giants vie for £2.5bn wealth manager Evelyn

Core Viewpoint - Two major British banks, Barclays and NatWest Group, are competing in a £2.5 billion takeover bid for Evelyn Partners, a wealth management group, with Royal Bank of Canada and several private equity firms also interested in acquiring the company [1][2]. Group 1: Acquisition Interest - Barclays and NatWest have advanced to the second round of bidding for Evelyn Partners, indicating strong interest in enhancing their wealth management divisions [1]. - Lloyds Banking Group has also considered an offer for Evelyn, although its current interest status is unclear [2]. Group 2: Strategic Importance - Acquiring Evelyn would strengthen Barclays and NatWest's existing presence in wealth management, particularly for NatWest through its Coutts division [2]. - NatWest's CEO has expressed a willingness to pursue acquisitions that are strategically attractive and reasonably priced, especially after the bank's return to full private sector ownership [3]. Group 3: Financial Overview - Evelyn Partners reported assets under management of £64.6 billion as of June, reflecting a growing demand in the wealth management sector [3]. - Canaccord Genuity's wealth arm is also for sale, potentially fetching over £1 billion [3]. Group 4: Ownership and Auction Process - Evelyn is currently owned by private equity firms Permira and Warburg Pincus, following the merger of Tilney and Smith & Williamson in 2020 [4]. - The auction process for Evelyn is being managed by bankers at Evercore [4].