Quilter & Co and Cheviot Asset Management are in talks to combine their businesses via a private-equity facilitated merger, which would create the UK's second biggest wealth manager.
Quilter & Co and Cheviot Asset Management are in talks to combine their businesses via a private-equity facilitated merger, which would create the UK’s second biggest wealth manager.
An announcement regarding the prospective merger is scheduled for early next month, according to UK news service Sky News.
The deal is being facilitated by Bridgepoint, the private equity group which bought Quilter from Morgan Stanley earlier this year for around £180m.
Confirming the talks, Martin Baines, CEO of Quilter said: “When Bridgepoint invested in Quilter earlier this year, we stated that an active search for complementary acquisitions would follow.
“We are currently in exclusive discussions with Cheviot Asset Management and expect to be able to provide more information in due course. We’re not able to provide more detailed answers to questions until then.”
The combined unit would have around £12bn in client assets, making it the second largest wealth manager in the country after Brewin Dolphin.
“Culturally and geographically, this transaction is as good a fit as you will find in private client management,” a source close to the deal told Sky.
Bridgepoint is expected to pay no more than £100m for Cheviot.
This article was first published on Investment Week