RBS agrees deal to sell Edinburgh-based £1.7bn wealth manager Adam & Co

Canaccord Genuity Group is buying wealth manager Adam & Co from Royal Bank of Scotland for £54 million as the sector undergoes further consolidation.

Adam & Co’s Edinburgh-based investment management business has client assets amounting to some £1.7 billion.

News of the sale follows speculation regarding a potential disposal as RBS parent NatWest Group focuses on its core UK banking operations.

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Canaccord Genuity, which is undertaking the deal through its wealth management business in the UK, said the acquisition marked a “unique opportunity” for Canaccord Genuity Wealth Management to enter the Scottish market with a “deeply established franchise and a strong brand”.

David Esfandi, CEO of Canaccord Genuity Wealth Management UK, which is acquiring Adam & Company from Royal Bank of Scotland/NatWest. Picture: Natalie Lawrence Photography
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CGWM UK intends to continue to operate the business under the name of Adam & Company. It added: “The business’s core client proposition will remain largely unchanged, and the existing direct relationships between clients and portfolio managers will not be affected.”

During the period to deal completion, the group intends to establish a new office location for the Adam & Co investment management business in central Edinburgh.

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David Esfandi, chief executive of CGWM UK, said: “Entering the Scottish market represents a very important milestone in our long-term growth strategy and we are pleased to be doing so with Adam & Company’s investment management business, a leading regional franchise with a strong cultural fit and a similar client base to our own.

“We are delighted to welcome this team of deeply established investment professionals, and we look forward to supporting their continued growth and commitment to providing the best possible outcomes for their clients.”

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Graham Storrie, managing director of Adam & Company, added: “To build on the success of Adam & Company’s investment management business it was essential to find a buyer who shared our investment philosophy and strategic ambitions for the future.

“I believe that with CGWM, we will be able to offer our clients in Scotland and beyond the continuity and high quality service they deserve, and I am delighted to have the opportunity to continue to lead this business.”

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Cash consideration of £54m will be paid on closing.

Earlier this week, Cornerstone Asset Management, which has offices in Edinburgh and Glasgow, was bought by Waverton Investment Management Group.

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