Brooks Macdonald International (International), the wholly owned Channel Islands-based subsidiary of the Brooks Macdonald Group, is to acquire the Channel Islands wealth management and funds business of Lloyds Bank International, subject to regulatory approval.
Expected to complete later this year, the acquisition builds on International's reinvigoration under CEO Andrew Shepherd (pictured), increasing total funds under management by two-thirds to £2.5bn.
It brings to the business a high-quality discretionary client base, adds a multi-asset and fixed income fund range to its offering, and increases its distribution reach through established intermediary relationships.
The total consideration for the acquisition is expected to be up to £9.63m and includes the entirety of Lloyds Investment Fund Managers and the investment management assets and client relationships of the discretionary investment management clients of Lloyds Bank International.
At the same time, International has reached an agreement in principle with Lloyds Bank for the two parties to introduce relevant services to each other’s clients on a reciprocal basis.
Lloyds Bank International’s wealth management and offshore funds business has a high-net-worth client base and strong intermediary relationships, with FUM of £1bn as of May 2020.
Following completion, the combined business will be based at International’s offices in Jersey and the businesses being acquired will be rebranded as Brooks Macdonald International.
Caroline Connellan, Chief Executive of Brooks Macdonald, commented: “This acquisition, the second for Brooks Macdonald in this financial year, is a further step forward in achieving our growth ambitions, creating value for shareholders and bringing benefits for clients and intermediaries.”
Andrew Shepherd added: “The acquisition brings additional intermediary relationships, increasing our distribution reach. The strong relationship we have built with the Lloyds Bank International management team means we are putting in place a partnership agreement for cross-referral of clients with a shared commitment to explore other ways for the businesses to co-operate.”