Rathbones seals £35m deal
LLOYDS Banking Group has confirmed the sale of some of its private client businesses, with funds of £1.27bn, to wealth manager Rathbone Brothers.
Rathbones, which was established in Liverpool more than 200 years ago, has agreed to buy the Bank of Scotland’s Portfolio Management Service and two directly invested discretionary private client portfolios controlled by Lloyds TSB Private Banking.
Lloyds said the sale followed a detailed review of the group’s private client activities.
Under the terms of the deal 6,000 customers with around £1.27bn funds under management will transfer to Rathbones, subject to client consent. Lloyds will continue to manage assets worth £8.5bn for 35,000 people.
The value of the deal depends on the proportion of funds transferred. Rathbones will pay £35.4m if all customers agree to the transfer.
Rathbones’ chief executive Andy Pomfret said: “This acquisition is a very attractive opportunity to increase Rathbones’ funds under management. The clients concerned are used to a very similar service to our own and can be confident that our reputation for investment management and personal service, and our stability, will provide them with a high-quality alternative.”
Tom Woolgrove, managing director of UK private banking at Lloyds, said: “Lloyds has carried out a thorough review of its private client businesses and has concluded that a specialist provider would be better positioned to manage this particular service for our clients.”
The deal will lead to the loss of 40 Lloyds jobs in Edinburgh.
