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Quilter has signed an agreement with the discretionary investment firm to combine the two companies.
The transaction, which has been funded by Quilter’s owner, European private equity firm Bridgepoint, is subject to regulatory approval but is likely to complete at the end of the year. Terms of the transaction were not disclosed.
The combined business, which will be known as Quilter Cheviot, will have total assets under management of more than £12bn – Quilter’s £8.2bn and Cheviot’s £4.1bn – most of which are discretionary portfolios run on behalf of private clients, charities and trusts, pension funds, corporate bodies and life companies.
Quilter has 385 staff based in 13 locations in the UK, including in Birmingham and Leicester, as well as Jersey and Ireland. Cheviot has 139 partners and other staff in offices in London and Liverpool.
Quilter Cheviot will be run by chief executive Martin Baines, Quilter’s current head. Cheviot chief executive Michael Kerr-Dineen will join the holdings board of Quilter Cheviot and act as a senior adviser to the firm.
Baines said: “We have made no secret of our intention to join forces with complementary businesses to accelerate our growth and there is a really strong fit between the two firms.
“The many synergies will benefit all of our clients and, as a combined business managing over £12bn of assets, we will have the scale and resources to be an even more powerful contender in the private client wealth management sector.”
Law firm Linklaters and PwC, which provided financial, tax and regulatory advice, worked on the transaction on behalf of Quilter and Bridgepoint.
Cheviot was advised by Addleshaws and Deloitte, with management helped by Weil, Gotshal & Manges.