The private equity firm behind Tilney Bestinvest is planning a £700m takeover deal of rival wealth manager Towry.
The Sunday Times reports Permira is “aggressively pursuing the deal”, which would see a combined group with assets under management of £18bn.
Towry employs 900 people while Tilney Bestinvest has 400 staff.
Sources have estimated the deal to be worth between £600m and £700m, meaning a windfall for Towry staff who hold an equity stake in the business.
Towry abandoned plans to float in December, with private equity backer Palamon Capital Partners said to be eyeing a sale this year. Towry is also said to have held talks with private equity firm Bain Capital over a possible sale.
Towry has expanded through several acquisitions in recent years, buying Ashcourt Rowan for £120m in March last year and acquiring Baker Tilly in 2014.