Rathbones buys Investec W&I to create £100bn group

300-year old Liverpool wealth management firm Rathbones is to acquire Investec W&I to create a group with £100bn of funds under management. Tony McDonough reports

Port of Liverpool Building
Rathbones is based at the Port of Liverpool Building. Picture by Tony McDonough


One of Liverpool’s oldest firms – wealth manager Rathbones – is to acquire with Investec Wealth & Investment for £839m to create a business with £100bn of funds under management.

Based at the Port of Liverpool Building, Rathbones was started by the Rathbone family in the 1720s as a timber merchant. It later moved into shipping, overseas trade and financial services.

Investec W&I is the wealth management of the Investec Group, which is listed on both the London and Johannesburg stock exchanges. Investec has a Liverpool team based at The Plaza in St Paul’s Square.

Rathbones will pay £839m for the division. It includes Investec’s wealth and investment businesses in the UK and Channel Islands but excludes Investec Bank based in Switzerland and the international wealth arm.

This deal is expected to create £60m of annual cost savings, through the consolidation of technology platforms and operations, third party services, and property.

These will also come through additional net interest income by moving Investec W&I’s cash on to Rathbones’ platform and banking licence. The enlarged business will trade under the Rathbones brand.

On completion of the transaction, Investec Group will own 41.25% of the economic interest in the Enlarged Rathbones Group’s share capital. Investec Group’s voting rights will be limited to 29.9%. 

Clive Bannister, chair of Rathbones, said: “This transaction not only presents a compelling strategic and financial rationale, but also accelerates Rathbones’ growth strategy.

“Operating at scale allows the group to offer an even more attractive proposition to clients and colleagues, supporting future growth and creating significant value for Rathbones’ shareholders.”

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Investec W&I UK currently has 325 investment managers and 45 financial planners across 15 offices, including Liverpool and Manchester.

Iain Hooley, chief executive of Investec W&I UK, said: “We are excited to be combining with Rathbones, a business with a similar heritage, common vision and a shared culture.

“As a combined business, we will have true scale, an enhanced client proposition, and complementary multi-channel distribution capability.

“The long-term, structural growth opportunity in the UK wealth industry is compelling and together we will be well placed to capitalise on it.”

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