Evelyn Partners has announced a significant strategic move, agreeing to sell its accounting business to funds advised by private equity firm Apax Partners for a substantial £700 million. This transaction, pending regulatory approvals and expected to close in the first quarter of 2025, will result in the creation of a new, independent audit firm boasting over 1,600 professionals.
Paul Geddes, CEO of Evelyn Partners, emphasized the positive implications of this deal for both entities. “The exciting transaction we have announced today is very positive for both businesses,” Geddes stated. He further added, “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.” This strategic divestment underscores Evelyn Partners’ commitment to sharpen its focus on its core wealth management services.
Evelyn Partners, known for its integrated wealth management and professional services, caters to a diverse clientele, ranging from individual online investors to large corporations and charities seeking sophisticated wealth management solutions. The firm has been actively expanding its footprint through strategic acquisitions, including the recent integration of three Haines Watts offices in key northern locations like Leeds, Manchester, and Newcastle. This sale to Apax Partners is set to provide Evelyn Partners with significant capital to further fuel its expansion in the wealth management sector.
According to Geddes, the increasing demand for Evelyn Partners’ core financial and professional services necessitates a strategic realignment. Spinning off the accounting division allows Evelyn Partners to concentrate resources and expertise on its rapidly growing wealth management business. This strategic decision comes at a time when the market for wealth management services is experiencing robust growth, presenting Evelyn Partners with an opportune moment to solidify its position as a leading player.
While Evelyn Partners will now operate exclusively as a focused UK wealth management firm, the accounting business, soon to be known as S&W under Apax Partners’ backing, will concentrate on the mid-market accountancy sector. This separation ensures that both firms will benefit from dedicated management teams and capital structures, enabling each to pursue ambitious growth strategies tailored to their respective markets. Importantly, the agreement includes a commitment to a strong and ongoing relationship between Evelyn Partners and S&W, ensuring continued support for mutual clients and the exploration of future collaborative opportunities.
Geddes highlighted Evelyn Partners’ strong position in the wealth management arena, noting, “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.” He further emphasized the firm’s unique strengths: “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.” This transaction allows Evelyn Partners to fully leverage these core strengths in a market increasingly seeking expert financial guidance.
Apax Partners, a globally recognized private equity firm with a history dating back to 1972, brings extensive international experience and resources to S&W. Headquartered in London, Apax Partners has managed approximately $77 billion in funds and operates from multiple international hubs, including New York, Hong Kong, and Mumbai. This global network presents significant opportunities for the newly independent S&W to expand its reach and service offerings.
S&W, inheriting a substantial foundation of approximately 1,600 employees and over 121 partners across 15 offices in the UK, Ireland, and the Channel Islands, will immediately rank among the top 10 UK accountancy businesses by headcount. Its service portfolio encompasses a comprehensive range of offerings, including business and private client tax advice, assurance and business services, and a suite of advisory and digital services covering recovery and restructuring, forensic services, and transaction support.
As part of the transition, key leadership figures will move from Evelyn Partners to S&W. Andrew Wilkes, formerly chief professional services director of Evelyn Partners, will assume the role of CEO of S&W. Andrew Baddeley, previously group chief financial officer of Evelyn Partners, will become CFO of S&W. This experienced leadership team is poised to guide S&W through its next phase of growth as an independent entity.
Andrew Wilkes expressed enthusiasm for the future of S&W and the partnership with Apax Partners. “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,” Wilkes commented. He further noted the recent expansion through acquisitions: “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.” Wilkes also underscored the continuing relationship with Evelyn Partners: “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.” This strategic sale positions both Evelyn Partners and S&W for focused growth and continued success in their respective markets, while maintaining a collaborative relationship for mutual benefit.
