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.

Mike Biggs, Close Brothers’ chairman, said: “The transaction is expected to increase the group’s common equity tier 1 capital ratio by approximately 100 basis points, marking  significant progress towards the plan we outlined in March 2024 to strengthen our capital base.

“The Board has unanimously  approved the transaction and believes that the agreed sale represents competitive value for our shareholders, allowing us to simplify the group and focus on our core lending business.

“CBAM has delivered impressive growth over the past years and has  developed into a strong franchise. Under the new ownership, it will 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.”

 

If you are looking to sell your business, find out more about the selling process and how Gunner & Co. can help you. Book a meeting with our Head of Brokerage Gwill here