Hargreaves Lansdown: Key Player in UK Wealth Sector M&A
Deal News | Feb 18, 2025 | EIN
The UK wealth sector is poised for a significant increase in mergers and acquisitions in 2025, driven by mounting staff and technology costs. In 2024, there were 67 M&A transactions totaling $10.5 billion, slightly down from 2023's figures. Despite this decline, industry experts anticipate a fertile ground for deals this year due to private equity's strong presence in the sector and the tendency of owners to sell assets held for over three years. Notably, Hargreaves Lansdown was sold to CVC Capital Partners, and Darktrace to Thoma Bravo. Key players like Evelyn Partners and Rathbones are expected to be active in the M&A landscape due to increased operational costs and market regulations. Market fragmentation remains, with many smaller firms and retiring financial advisors contributing to ongoing consolidation activities.
Sectors
- Wealth Management
- Private Equity
Geography
- United Kingdom – The article specifically discusses the UK wealth sector, including the City of London's financial district and various British wealth management firms.
Industry
- Wealth Management – The article focuses on mergers and acquisitions within the UK wealth management sector, where companies are consolidating to overcome rising costs and regulatory pressures.
- Private Equity – Private equity firms are active participants in the M&A activities described in the article, with ownership stakes in target companies such as Hargreaves Lansdown and involvement in consolidation strategies.
Financials
- $10.5bn – Total value of 67 M&A transactions in the UK wealth sector in 2024.
- 700m – The sale price of Evelyn Partners' accountancy business to private equity firm Apax in November.
- $14.5bn – Total value of 83 M&A transactions in the UK wealth sector in 2023.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Hargreaves Lansdown | Target Company | Company | A trading platform involved in a significant M&A deal, sold to a consortium led by CVC Capital Partners. |
| CVC Capital Partners | Bidding Company | Company | A private equity firm that led the consortium purchasing Hargreaves Lansdown. |
| Darktrace | Target Company | Company | A cybersecurity firm sold to US investor Thoma Bravo. |
| Thoma Bravo | Bidding Company | Company | A US investment firm that acquired Darktrace. |
| Evelyn Partners | Possible Target Company | Company | A wealth management firm rumored to be a takeover target and owned by private equity firms Permira and Warburg Pincus. |
| Rathbones | Other Company | Company | A wealth management firm exploring more M&A deals in response to rising costs and market competition. |
| Boston Consulting Group | Analyst | Company | Provided analysis of M&A transactions in the UK wealth management sector. |
| EIN M&A feed | Source | Company | The source of the news aggregation on M&A activity. |
| Permira | Private Equity Owner | Company | A private equity firm with a stake in Evelyn Partners. |
| Warburg Pincus | Private Equity Owner | Company | A private equity firm with a stake in Evelyn Partners. |
| Ares Management | Private Capital Firm | Company | Backers of Independent Wealth Planners (IWP), a major consolidator in the UK wealth management sector. |
| Independent Wealth Planners (IWP) | Company Acquired | Company | A UK wealth management consolidator recently acquired by Titan Wealth. |
| Titan Wealth | Acquiring Company | Company | Acquired Independent Wealth Planners. |