London's Rathbone Brothers acquires Glasgow investment management firm

Today (June 14), the board of Rathbone Brothers plc has announced that it is to acquire 100 per cent of the issued share capital of Speirs & Jeffrey Limited, Scotland’s largest independent wealth manager.

The funds under management amount to £6.7bn and 38 investment professionals, from the shareholders of Speirs & Jeffrey, all of whom are working executive directors of the business.

London-headquartered Speirs & Jeffrey has operated as an independent investment management firm for over a century and has established many long term client relationships, with nearly three quarters of clients having been with the company for over 10 years.

Philip Howell, CEO of Rathbones, said: “From the outset of our engagement, both teams have recognised how compatible they are in culture, investment philosophy and dedication to client service.

“Speirs & Jeffrey represents an ideal strategic, professional and geographic fit with Rathbones and we look forward to working together both to develop our business in Scotland and deliver compelling returns for our shareholders.

“Key to our combined future success will be the principle of putting clients at the forefront of what we do, and we will remain committed to this as we welcome Speirs & Jeffrey into the group.”

All of Speirs & Jeffrey’s current directors and investment managers will be joining Rathbones. Speirs & Jeffrey’s CEO, Russell Crichton will become the head of Rathbones’ Scottish base, with Rathbones’ Glasgow team combining with Speirs & Jeffrey to consolidate Rathbones’ existing presence in the city.

Speirs & Jeffrey’s clients will see continuity of their investment manager and will benefit from the support of and access to Rathbones’ deeper research resources, front office investment systems, wider platform and the provision of an enhanced investment process.

Rathbones is a consolidator within the wealth management industry, with many successful acquisitions of culturally aligned businesses with a shared focus on their clients and people.

In line with its stated strategy, Rathbones has been growing its core private client discretionary investment management business both organically and by acquisition.

The acquisition of Speirs & Jeffrey will enable Rathbones to establish a much stronger presence in Scotland, with Glasgow becoming the group’s largest office after London following the transaction.

Under the terms of the transaction, Rathbones will pay an initial cash and share consideration of £104m.

Russell Crichton, CEO of Speirs & Jeffrey, added: “My colleagues and I have long admired Rathbones, and everything we experienced during our discussions has merely strengthened our conviction that it offers the very best fit for our clients and our people.

“With our client-facing staff members committed to and enthusiastic about the future, clients will continue to enjoy the high level of personal service which has become the hallmark of our firm, but with the additional significant benefits of Rathbones’ scale, specialist expertise and deeper capabilities.

“We are all excited about our partnership with Rathbones and the opportunities this new chapter in our history will provide.” Graham Waddell, Chairman, added: “This represents a significant milestone for S&J but undoubtedly the right one for our clients and our people.

“The fact that our team will remain intact and that our clients will continue to receive the same exacting standards of personal service, whilst benefitting from the wider resources of Rathbones, fills me with great confidence for the future.”