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Brooks Macdonald International has bought the Channel Islands wealth management and funds business of Lloyds Bank International Limited.
The Channel Islands-based subsidiary of the Brooks Macdonald Group has entered an agreement to acquire the business and is expected to complete the deal later this year, subject to regulatory approval.
Andrew Shepherd, CEO of International, said the acquisition is expected to cost up to £9.63 million and includes the entirety of Lloyds Investment Fund Managers Limited and the investment management assets and client relationships of the discretionary investment management clients of Lloyds Bank International Limited.
“We are delighted to have agreed this acquisition which represents a major move forward for the International business," he said. " It increases International FUM materially, brings a high-quality discretionary portfolio client base and adds a strong multi-asset and fixed income fund range to our proposition to clients, advisers and trustees."
At the same time, International has also reached an agreement in principle with Lloyds Bank for the two parties to "introduce relevant services to each other’s clients" on a reciprocal basis.
"It also brings additional intermediary relationships, increasing our distribution reach," said Mr Shepherd. "I am particularly pleased that the strong relationship we have built with the Lloyds Bank International management team means that we are putting in place a partnership agreement for cross-referral of clients with a shared commitment to explore other ways for the businesses to co-operate.”
Following completion, the combined business will be based at International’s offices in Jersey and the businesses acquired will be rebranded as Brooks Macdonald International.
Caroline Connellan, Chief Executive of Brooks Macdonald, said the agreement will increase the total Funds Under Management (FUM) by two-thirds to circa £2.5 billion.
“The acquisition of Lloyds’ offshore wealth and funds business adds to this transformation, bringing greater scale, new capabilities and expanded distribution reach," she said. "As well as the good strategic fit, our discussions with Lloyds Bank International have shown we have similar cultures with a shared strong focus on clients and intermediaries."
Pictured: Caroline Connellan, Chief Executive of Brooks Macdonald, said the agreement is a major step forward for the business.
"This acquisition, the second for Brooks Macdonald in this financial year, is a further step forward in achieving our growth ambitions, complementing our organic strategy, creating value for shareholders and bringing benefits for clients and intermediaries.”
Alasdair Gardner, Islands Director of Lloyds Bank International, said: “When we decided to sell our Islands wealth and funds business, it was of paramount importance that we found a company with a similar culture to our own and with a strong client focus at its heart, such as Brooks Macdonald."
"This is particularly important as most of the discretionary portfolio clients are also banking clients of Lloyds Bank International. We wanted to be confident that our clients and intermediary supporters would continue to receive the highest levels of service and one that they would be happy to work with in the future.
"Throughout our discussions, we have been impressed by the strong client focus and growth aspirations of the Brooks Macdonald International management team and we are very pleased to have reached this agreement with them.”
Lawyers from Carey Olsen advised Lloyds Bank International, with Jersey corporate partner Guy Coltman leading the group.
Pictured: Guy Coltman, corporate partner at Carey Olsen Jersey, which assisted with the deal.
He was assisted by senior associate David Taylor and associate Steven Khan. Jersey counsel Huw Thomas and senior associate Nienke Malan also supported the transaction from an employment and funds/regulatory perspective.
In Guernsey, corporate partner Tom Carey and senior associates Chris Hutley-Hurst and John Scanlan advised on the Guernsey aspects of the transaction.
Pictured top: Andrew Shepherd, CEO of International.
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