M&A Market Update
February’s cohort of transactions included four high‑profile merger and acquisition (M&A) deals concentrated in the asset and wealth management sectors, including the acquisitions of Schroders, Pacific Asset Management, Evelyn Partners and Amber River. The remaining two deals were executed by Benchmark Capital (a Schroders subsidiary) and involved Independent Financial Adviser (IFA) targets — Verum Financial and Caroline Banks & Associates.
Two of the transactions represented exits by private equity (PE) funds that had reached the end of their investment cycles and were ready to take profits. One of the businesses was sold to a listed strategic acquirer and the other to an overseas PE fund. If markets remain favourable, there will likely be more of these as funds that invested in the sector during 2021 and 2022 approach the end of their holding periods and start considering potential exit opportunities.
Total Announced UK Investment Sector Transactions, Annual
With four transactions exceeding £100m and two smaller deals valued below £25m, deal values in February reached a record high for a single month. Among the four large transactions, two were multi‑billion‑pound deals: Nuveen’s £9.9bn acquisition of Schroders and NatWest’s £2.7bn acquisition of Evelyn Partners, both representing significant strategic moves for the buyers. The investment sector saw record aggregate deal values in 2025 and, despite it still being early in the year, the high level of activity seen at the upper end of the market in 2026 so far suggests significant momentum in the market.
Announced UK Investment Sector Transactions by Target Size
In contrast to previous months, PE was not the dominant acquirer type in February. Instead, three transactions were completed by quoted acquirers and three by overseas buyers (though one of the overseas acquirers was a U.S.‑based PE firm). In recent years, overseas acquirers — particularly those from North America — have steadily increased their share of the deal count, reflecting continued international appetite for UK opportunities. Quoted acquirers, however, were less prominent while several high‑profile listed businesses themselves have become targets, as exemplified by the bid for Schroders this month.
PE-Backed Transactions as a % of Total Announced Transactions
Notable transactions (February 2026):
- FTSE 100 constituent Schroders announced it had agreed to a takeover by U.S.-based asset manager Nuveen. The £9.9bn deal is expected to create one of the world’s largest global asset managers with £1.83tn of assets under management (AUM). Following completion of the transaction, the Schroders brand will be preserved, with London designated as the combined entity’s non‑U.S. headquarters and its largest operational hub. The deal enhances Nuveen’s access to new markets, product offerings and investment talent, with the cash acquisition due to complete in Q4 2026.
- NatWest Group announced the acquisition of wealth manager Evelyn Partners from the PE funds managed by Permira and Warburg Pincus. The £2.7bn deal is expected to create a leading private banking and wealth management business in the UK, combining Evelyn Partners’ £69bn of assets under management and advice (AUMA) with the £59bn of AUMA in NatWest’s existing private banking and wealth management business.
- Australian investment firm Pinnacle Investment Management announced the acquisition of £14bn AUM London-based funds business Pacific Asset Management (PAM). Pinnacle first acquired a 25% interest in PAM in 2024, with the current deal covering the remaining externally held shares. The transaction reflects Pinnacle’s confidence in PAM’s long-term strategy and strengthens its foothold in the UK funds market. PAM’s leadership team, management and employees are expected to remain after the transaction completes.
- Wealth manager Amber River announced it had received investment from U.S.-based PE firm Stone Point Capital. Amber River has £13.6bn in assets under management and administration, more than 330 financial planners, advisers, technical experts and investment professionals across 13 regional wealth centres. After the deal completes, Amber River’s existing PE-backer, Penta Capital, will remain onboard as a key investor.
Other UK transactions (February 2026):
- Benchmark Capital announced the acquisition of two advice businesses, Canterbury-based Verum Financial and Mayfair-based Caroline Banks & Associates, with both deals adding in aggregate £450m of client assets.
- Clifton Wealth announced it had expanded its footprint in Scotland with the acquisition of two advice firms, Fife-based Cairn Independent and Glasgow-based JRW, with both deals adding in aggregate £150m of client assets.
- Avon Investment Strategies announced the acquisition of Kent-based IFA Throgmorton Private Capital.
