Bestinvest buys RDR champion Towry for £600m

Signing contractUK wealth manager Towry – which built up £9 billion (€11 billion) of client assets using a fee-based adviser service even before regulatory bans on commissions forced other advisers into the same model – is to be sold by its private equity backers. Palamon Capital Partners, Towry’s private equity owners, is selling Towry to Tilney Bestinvest for £600 million subject to regulatory approval. Towry itself, with Palamon’s backing, has made six acquisitions in recent years following the UK’s retail distribution review (RDR). Palamon had recognised RDR would provide a consolidation opportunity, the firm said. The RDR, implemented in 2013, saw the ending of commissions paid to advisers, which were replaced by fees. Palamon said Towry had operated this fee-for-service model successfully “for years” before the RDR. One of Towry’s most recent acquisitions was the listed Ashcourt Rowan wealth management business in 2015, which Towry took private. Towry has revenues to £120 million. The sale will result in total sterling investment returns for Palamon of 13 times invested capital. Towry is one of the largest independent wealth managers in the UK more than 900 staff across 21 regional offices and offers investment management alongside financial planning. Palamon said the combination of Towry and Tilney Bestinvest would create the leading UK wealth management firm for affluent and high net worth clients. Palamon has a history of wealth management acquisitions, starting with John Scott & Partners in 2003. Rob Devey, chief executive of Towry, said that over the past two years Towry had more than doubled earnings and driven strong improvements in client satisfaction. Bestinvest’s ‘Best of Breed’ fund range was rated as the “star performer” among UK ‘gatekeepers’ recently by Fundscape and GBi2. ©2016 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.