Rathbones acquires private client assets
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Rathbone Brothers is to buy £1.27 billion worth of private client funds from Lloyds Banking Group for £35.4m.
The acquired funds will come from two books of discretionary private client portfolios which, as at August 31, represented £493m in funds and about 2,000 clients. Rathbones will pay 3.4% of the funds’ value to acquire them.
The Bank of Scotland portfolio management service’s portfolio of clients accounted for £775m and about 4,000 clients. Rathbones will pay 2.4% for these assets.
The deal will see Rathbones’ assets under management swell by 11.8% to £12 billion.
Meanwhile, as part of the deal, the group’s unit trust business will receive referrals from the banks’ wealth management clients.
Lloyds TSB and Bank of Scotland private banking clients that have investable assets of up to £2m and require direct investments within a discretionary portfolio management service will be referred to Rathbones.
This exclusive distribution agreement will initially last for five years.
