Evelyn Partners Group has agreed to sell its accounting business to funds advised by Apax Partners. While the transaction is subject to regulatory approval, on clearing in the first quarter of 2025, it will create a new audit firm of more than 1,600 staff.
Paul Geddes, CEO of Evelyn Partners, commented, “The exciting transaction we have announced today is very positive for both businesses. Plans for an orderly separation are well advanced and I am grateful to the many colleagues across both businesses who have been involved in this. As well as being positive for our clients, the transaction will also create value for our investors, including the many colleagues who are shareholders.”
Evelyn Partners provides integrated wealth management and professional services. Its clients range from online investors to those requiring bespoke wealth management, and from charities to entrepreneurs and corporate businesses. In recent months, the firm has been expanding its operations via an acquisitions campaign of its own. This included a move for three Haines Watts offices in Leeds, Manchester and Newcastle.
To fuel that growth, the deal with Apax will land Evelyn Partners a £700 million sum. According to Geddes, the rising demand for Evelyn Partners’ financial and professional services business mean “this is the right moment to sharpen our focus” by spinning off its accounting wing.
While Evelyn Partners will now continue as a pure-play UK wealth manager, the deal will see investor Apax back the future growth of S&W, focusing on the accountancy mid-market. The separation will mean both firms will have their own dedicated management teams and capital bases, with the strategy and funding for each fully focused on their respective ambitious growth plans. At the same time, both businesses will commit to a strong ongoing relationship as part of the deal, continuing to support mutual clients and growth opportunities.
Geddes noted, “Following completion of the transaction, we will focus on extending the position of Evelyn Partners as one of the UK’s largest wealth managers, responsible for £62.7 billion of client assets, and with a track record of delivering positive net inflows of new assets every quarter since the 2020 merger. The strength of our dual expertise in both financial planning and investment management places us in an excellent position to support and attract clients in an environment when the demand for expert advice is exceptionally high.”
Apax Partners is one of the oldest and largest private equity firms operating on an international basis. Founded in 1972, the London-headquartered firm has raised and advised funds of approximately $77 billion during its existence, and operates out of six other offices in New York, Hong Kong, Mumbai, Tel Aviv, Munich and Shanghai – presenting new global opportunities for its newest portfolio-member.
With around 1,600 employees and more than 121 partners operating from 15 offices across the UK, Ireland and the Channel Islands, S&W will already rank as a top 10 UK accountancy business in terms of headcount from its inception. Its services span business and private client tax advice, assurance and business services and a suite of advisory and digital services that include recovery and restructuring, forensic services, and transactions.
As part of the separation from Evelyn Partners, Andrew Wilkes, chief professional services director of Evelyn Partners, will become chief executive officer of S&W. Meanwhile, Andrew Baddeley, who was group chief financial officer of Evelyn Partners, will take up the role of CFO of S&W.
Wilkes stated, “Our Professional Services business has experienced a period of very strong growth in recent years, attracting top talent at all levels and expanding the range of services which we provide. More recently, we have launched our M&A programme, completing seven deals. We are seeing significant growth opportunities in the market and the whole team are very excited about our partnership with Apax Partners. The new funding and expertise that Apax brings will help accelerate our growth strategy. As we look ahead to a standalone future, the relationship with Evelyn Partners will be an enduring one as we continue to provide a joined-up service for shared clients, as well as identify new opportunities to work together.”