London-based wealth manager Tilney has confirmed that it is in merger talks with wealth manager Smith & Williamson, which has operations in Jersey.
The firm says a merger of Tilney and Smith & Williamson would create an integrated UK wealth management and professional services group with more than £45bn of assets under management. Discussions are ongoing, it says, and a further announcement will be made as and when appropriate.
Both firms have strong discretionary investment management businesses – Tilney manages £24bn worth of assets, Smith & Williamson £21bn. Tilney also has a large financial planning business and online business Bestinvest, while Smith & Williamson has a large accountancy division, including tax advisory.
In 2017 Smith & Williamson held an unsuccessful round of merger talks with wealth manager Rathbones. Tilney launched an alternative bid, but Smith & Williamson pursued a deal with Rathbones that collapsed.
Following the failed merger talks with Rathbones, Smith & Williamson publicly committed itself to a stock market listing by 2020.
Tilney was acquired by private equity firm Permira from Deutsche Bank in 2014.