Deutsche Bank has signed a definitive agreement to buy Tilney Group, a UK wealth manager with £6.7bn in assets under management from Bridgepoint and management. Financial terms have not been disclosed, though the deal is thought to value Tilney at around £350m (US$660m).
Bridgepoint acquired Tilney in a management buyout (MBO) from futures broker Refco in March 2005, representing its first foray into the fund management sector.
Deutsche Bank said the deal is: “Part of a strategic move to strengthen its presence in the UK private wealth management market.”
A source close to the sellers said Tilney has grown from £5bn in assets under management at the time of the MBO last year to £6.7bn, with Bridgepoint generating a money multiple of 3x on the exit.
The company, founded in Liverpool in 1836, now claims to be the fourth largest independent provider of wealth management services in the UK. It has 330 employees servicing a client base of over 15,000 and has offices in London, Liverpool, Edinburgh, Glasgow, Birmingham and Shrewsbury.
According to Bridgepoint it has exited or recapitalised investments which have allowed it to return over €1.5bn to fund investors so far this year.