Wealth manager Waverton is to merge with rival London & Capital to form a £17bn AUM wealth management business.

The companies say the deal with bring together the UK expertise of Waverton and the international wealth and Financial Planning interests of London & Capital.

Waverton has expanded in recent years with the acquisition of several Financial Planning firms. In 2021 it acquired Scottish wealth manager and Financial Planner Cornerstone Asset Management and in 2019 it acquired London-based Timothy James & Partners.

The financial aspects of the merger have not been made public but private equity firm Lovell Minnick Partners (LMP), a US private equity firm investing in growth-oriented companies, and London & Capital’s majority shareholder, will take a majority shareholding in the combined business, the firms said.

Somers Ltd, the majority shareholder in Waverton since 2013, will continue as a significant shareholder in the new business.

The deal is subject to regulatory approval.

The firms say the new merged business will have an AUM of over £17bn and bring together two groups with “similar client-focused cultures.”

Guy McGlashan, CEO of London & Capital, will be CEO of the combined business. Nick Tucker will remain as CEO of Waverton until the deal is completed and will then take a place on the board.

He said: "We're genuinely thrilled to announce our merger with Waverton. Our shared commitment to a client-focused approach aligns seamlessly, and we believe this combination will elevate our ability to effectively scale while delivering unparalleled client service, investment opportunities and wealth solutions.”

Nick Tucker, CEO of Waverton, said: “The merger of Waverton with London & Capital is a hugely exciting stage in Waverton’s evolution for our clients, our staff, and our shareholders."

Spencer Hoffman, partner at LMP, said: “The combined experience and skillsets of these two businesses will provide an enhanced level of service for clients, creating a firm with scale and differentiation. We look forward to supporting Guy and the talented management teams to expand service offerings, enhance technology capabilities and shape a prosperous future for our clients, employees and stakeholders.”

Rothschild & Co advised London & Capital Group, Proskauer advised LMP and Waverton Investment Management Group was advised by Spencer House Partners.

London & Capital was established in 1986 as a specialist wealth and asset manager working with private and institutional clients. Based in London, it has over £6bn in Assets Under Management and 130 employees. Many of London & Capital’s private clients are international.

Waverton Investment Management Limited calls itself an independent investment management business and works with private clients, financial advisers, charities and institutional investors. It is headquartered in London, with offices in Edinburgh and Glasgow and has over £11bn in Assets Under Management (AUM) and 175 employees. The group includes Waverton Wealth Planning LLP and Waverton Investment Management Ltd.

Lovell Minnick Partners has been investing in growth-oriented companies for 25 years. It has stakes in a number of financial firms including fund manager Matthews Asia and insurance brokerage Charles Taylor. Since launch in 1999 it has raised over £3.76bn of capital, invested in over 50 companies and completed over 175 acquisitions. LMP targets growth-oriented, middle-market companies, with a particular focus on companies in the financial services, business services and financial technology sectors.