According to Old Mutual Wealth, its current client base (investing via the Old Mutual Wealth platform) typically invests between £50,000 and £250,000, whereas the average sum invested through Quilter’s bespoke service is closer to £500,000.
While the deal is subject to approval by regulators, once approved, Quilter Cheviot will become the discretionary investment management business within Old Mutual Wealth, with current CEO, Martin Baines, keeping his existing role, but will report to Old Mutual Wealth CEO, Paul Feeney. He will also join the Old Mutual Wealth executive committee.
According to Old Mutual, much of the rationale behind the deal was a desire to gain further access to the growing trend being seen post-RDR, of advisers outsourcing their investment requirements. And, in order to do that, a range of investment solutions that meet differing needs was required.
“Discretionary investment management was a clear gap in our proposition and the addition of Quilter Cheviot closes that gap. This acquisition is a major step towards our vision of becoming the UK’s leading investment business, with a proposition we can export to our international markets over time,” Feeney said.
From Quilter Cheviot’s point of view, Baines said, the deal was also attractive because it allows it to tap into Old Mutual’s distribution network and provide it with the financial security that comes with a large parent.
