Old Mutual Wealth is to acquire discretionary investment manager Quilter Cheviot for £585 million (€731.7 billion) to close what chief executive Paul Feeney says is “a clear gap” in the proposition.
The deal will add a discretionary investment management service to Old Mutual Wealth’s offering, which alreadu includes individual advice, managed investment solutions and standalone asset management capabilities.
Old Mutual Wealth, which has £300.5 billion (€375.8 billion) in assets under management, says adding Quilter Cheviot’s discretionary investment service will enable it to meet the needs of high-net-worth investors more effectively.
The retail investment business also aims to maximise its participation in the growing trend of financial advisers outsourcing investment solutions.
Quilter Cheviot, which has £16.2 billion in assets under management, will not alter its discretionary investment management process, and chief executive Martin Baines will remain in his role. He will join the Old Mutual Wealth executive committee and report to Paul Feeney, chief executive of Old Mutual Wealth.
Paul Feeney, chief executive of Old Mutual Wealth, says: “Discretionary investment management was a clear gap in our proposition and the addition of Quilter Cheviot closes that gap. “
Feeney says the service may also be something that Old Mutual Wealth can export to international markets in the future.
Martin Baines, chief executive of Quilter Cheviot, says: “Old Mutual Wealth has a very strong distribution network through which we will be able to promote our discretionary investment management services and we will get greater access to the market-leading asset management capability within Old Mutual Global Investors.”
The acquisition is subject to regulatory approval.
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