Brooks acquires Lloyds' wealth management arm

Lloyds Bank International’s wealth management arm, based in the Channel Islands, has been acquired by Brooks Macdonald in a deal worth up to £9.6m. 

£1bn in discretionary assets under management will be transferred to Brooks. All clients – 1,200 in Lloyds’ investment management business, and 10,500 in the funds business – will move over to Brooks. As well as the total £1bn assets, the acquisition represents an increase of Brooks’ international assets by two-thirds, and has also provided Brooks with the capacity to operate multi-asset and fixed income funds.

As part of the transaction, Brooks and Lloyds have also entered a referral agreement, in which they will recommend appropriate services provided by the other to their clients. 

Chief executive of Brooks Macdonald, Caroline Connellan, said: “As well as the good strategic fit, our discussions with Lloyds Bank International have shown we have similar cultures with a shared strong focus on clients and intermediaries.  

“This acquisition, the second for Brooks Macdonald in this financial year, is a further step forward in achieving our growth ambitions, complementing our organic strategy, creating value for shareholders and bringing benefits for clients and intermediaries.”

Connellan confirmed that Brooks were still looking for further acquisitions throughout 2020, but that the but had a “very high bar” for prospective vendors. 

Islands director of Lloyds Bank International, Alasdair Gardner, emphasised the “paramount importance” to the firm that the acquiring firm had a “strong client focus” and a similar work culture. 

He commented: “We wanted to be confident that our clients and intermediary supporters would continue to receive the highest levels of service and an owner that they would be happy to work with in the future.  

“Throughout our discussions, we have been impressed by the strong client focus and growth aspirations of the Brooks Macdonald International management team and we are very pleased to have reached this agreement with them.”