Group 1 - NatWest has agreed to acquire wealth management company Evelyn Partners for £2.7 billion, marking the largest private equity-backed exit in UK history [1] - The acquisition aims to expand NatWest's coverage of high-net-worth clients and accelerate the simplification of its business under CEO Paul Thwaite [1][2] - Post-acquisition, the combined entity will manage £127 billion in assets, with total client assets and liabilities reaching £188 billion [1] Group 2 - The deal is expected to enhance revenue diversification and strengthen returns in high-growth areas, contributing positively to long-term value creation [2] - NatWest plans to finance the acquisition using existing resources, which will reduce its Common Equity Tier 1 (CET1) capital ratio by approximately 130 basis points [2] - The transaction is valued at 9.7 times Evelyn's projected EBITDA of £179 million for the fiscal year 2025, with anticipated annual cost synergies of around £10 million [3]

NatWest buys UK wealth manager Evelyn and hedge funds bet on more pound weakness after McSweeney’s exit-- get briefed ahead of your morning calls with The London Rush https://t.co/MNaxhY3qhq ...

Acquisition of Evelyn Partners Creating the #1 UK Private Bank and Wealth Manager Transforming our savings & investments offering for our >20 million customers Accelerating delivery of our Group strategy in a structurally attractive growth market Scales our PBWM business to ~20% of Group customer assets and liabilities1 , incl. £127bn AUMA2 Increases Group fee income by ~20%3 strengthening growth, RoTE and capital generation Higher return than a share buyback, with significant value creation from revenue an ...

NatWest agrees to buy wealth management group Evelyn Partners in a £2.7 billion deal https://t.co/MREp9ZbfTe ...

Group 1 - NatWest Group has agreed to acquire Evelyn Partners, one of Britain's largest wealth managers, in a deal valued at 2.7 billion pounds ($3.68 billion), including debt [1]

NatWest is closing in on a takeover of wealth management group Evelyn Partners after beating out Barclays in a hotly contested auction https://t.co/UCt1rkPq0R ...

Group 1 - NatWest Group is nearing a £2.5 billion ($3.4 billion) acquisition of Evelyn Partners, one of Britain's largest wealth managers [1]

You can find original article here WealthManagement. Subscribe to our free daily WealthManagement newsletters. While RIA M&A activity dominates the headlines, successful wealth managers are not built on deals alone.  The Wealth Management RIA Edge 100 list, released this week, is a case in point. The list, which is completely data-driven, highlights RIAs that demonstrate strategic growth while maintaining client service commitments, based on a set of criteria.  That said, deals are still happ ...

Company Overview - Aprio is an Atlanta-based business advisory and accounting firm with a wealth management subsidiary managing $5.5 billion in assets [1] - The firm was founded in 1952 and rebranded in 2015, becoming one of the largest accounting firms in Atlanta and the U.S., serving clients in over 50 countries with more than 2,300 employees [7] Leadership Changes - Courtney Holt has been appointed as the chief compliance officer for Aprio Wealth Management, previously serving as CCO at Compound [1] - Prior to Compound, Holt held the CCO position at Perigon Wealth Management, which manages approximately $9.3 billion in assets [2] - Aprio has recently added several senior leaders, including Noah Marell as COO, Jandy Rowe as director of client services operations, and Erin O'Connor-Bell as director of financial planning and client experience [3] Strategic Initiatives - Aprio has launched a new team model integrating wealth, tax, estate, and succession planning into a coordinated structure, providing clients with a single point of contact [5] - The firm has also recruited Dan Wilson to lead M&A efforts and Chris Guinther as a senior wealth advisor [4] Recent Acquisitions - In September, Aprio acquired Mize CPAs, which specializes in servicing McDonald's franchise owners, along with its affiliated wealth management firm, Prism Financial Group, managing $1.98 billion in assets [6] Investment and Growth - In July 2024, Aprio received a strategic investment from Charlesbank Capital Partners, marking the first capital injection into the firm, aimed at enhancing growth through organic means and M&A [8]

Financial Data and Key Metrics Changes - Full-year non-GAAP operating earnings were $5.64 per share, or $6.21 per share after adjusting for notable items, up 1% over 2024 [6][7] - Full-year organic cash generation was $1.6 billion, consistent with guidance, expected to increase to approximately $1.8 billion in 2026 [8][25] - Assets under management and administration ended 2025 at a record $1.1 trillion, up 10% year-over-year [8][18] - The company returned $1.8 billion to shareholders in 2025, with a payout ratio of 68% excluding incremental buybacks [8][24] Business Line Data and Key Metrics Changes - In Retirement, net flows were $5.9 billion in 2025, a 4% organic growth rate, supported by record RILA sales [9] - Wealth Management saw full-year net inflows of $8.4 billion, a 13% organic growth rate, with a 12% increase in the number of wealth planners [9][22] - AllianceBernstein (AB) experienced overall net outflows of $11.3 billion, but its private markets business increased AUM by 18% to $82 billion [10] Market Data and Key Metrics Changes - The company reported strong momentum in the private markets business, with a target of $90 billion-$100 billion in AUM by the end of 2027 [10] - The institutional pipeline for AB ended 2025 with $20 billion, indicating strong future growth potential [10] Company Strategy and Development Direction - The company is focused on three core growth engines: U.S. retirement, asset management, and wealth management, aiming to refine its business mix [5] - The life reinsurance transaction with RGA is expected to create a more valuable company by reducing mortality exposure by 75% and freeing up $2 billion of capital [11][15] - The company aims to achieve $150 million in expense savings by 2027, with $120 million already in run rate results [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2027 financial targets, with solid momentum entering 2026 [6][31] - The company expects EPS growth to accelerate in 2026, driven by reduced mortality exposure and strong cash generation [15][16] - Management highlighted the importance of maintaining a disciplined approach to expenses and capital allocation to support growth [48][88] Other Important Information - The adjusted book value per share was $33.84, providing a more meaningful valuation than reported book value [19] - The company expects a total company tax rate of approximately 20% and segment tax rates of 16% for retirement, 26% for wealth management, and 28% for asset management [29] Q&A Session Summary Question: Insights on private credit portfolio quality - Management indicated that private credit constitutes about 16% of the total general account, with minimal exposure to software, which is only 1% of the total [35][36] Question: Competition for advisors in wealth management - Management noted that organic growth is strong, with a focus on recruiting experienced advisors and maintaining a disciplined approach to hiring [40][42] Question: Addressing valuation gap between AB and Equitable - Management acknowledged the valuation gap and emphasized the importance of focusing on business growth and execution to close it [45][48] Question: Mortality exposure and potential for further reduction - Management discussed the impact of recent claims and indicated that while the remaining exposure is manageable, they will explore options to further reduce it [49][51] Question: Retirement segment commission and distribution expenses - Management explained that commission expenses are expected to normalize over time, with growth in earnings expected to exceed commission expenses [55][56] Question: Cash flow conversion and underlying drivers - Management confirmed that cash generation is improving, driven by higher asset and wealth earnings, and emphasized the importance of cash flow as a key metric [65][68]