Private equity firm Permira has announced plans to combine Tilney, Deutsche Bank's regional wealth management business, and Bestinvest in order to form a standalone wealth manager with about £9bn of assets under management.
A company controlled by the funds of Permira is expected to complete the acquisition of Tilney's Birmingham, Edinburgh, Glasgow and Liverpool regional businesses from Deutsche Bank in the second quarter of 2014.
Permira acquired 3i's majority stake in Bestinvest in November, generating total proceeds of approximately £45m.
Following regulatory approval of both acquisitions, the Tilney brand will be re-introduced in the discretionary investment management market as part of the Bestinvest brand.
Permira partner Philip Muelder said the combined businesses would offer a broad and complementary range of services.
He added: "The combined business will benefit from the advantages of increased scale and full national coverage and will be ideally positioned to capitalise on the opportunities that are emerging from recent regulatory changes."
Last year, the wealth manager announced plans to almost double its restricted financial planning team. It said it was aiming to take advantage of the withdrawal of a number of major banks from the advice space.
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