Close Brothers has agreed to sell its asset management branch to Oaktree for £200m, with the deal expected to complete early next year.
The transaction will amount to £172m, with the additional £28m coming from contingent deferred consideration in the form of preference shares.
Group chairman Mike Biggs said the removal of its wealth management business – which has been under restructure since the start of this year – would allow Close Brothers to “simplify the group and focus on our core lending business”.
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Close Brothers Asset Management has gross assets of £192m, and Biggs hopes the sale to Oaktree will allow it to “benefit from additional resources to accelerate its growth trajectory”.
Oaktree’s managing director Federico Alvarez-Demalde said: “The business is well known for its client centric culture which we absolutely intend to preserve and nurture as we invest in its service capabilities and technology to build a vertically integrated UK wealth business of scale.
“In the coming months we will bring to bear our extensive operational experience in the sector to work closely with Close Brothers and ensure a successful separation and transition of the business.”
This story was written by our sister title, Portfolio Adviser
