Close Brothers Group has sold its Close Brothers Asset Management (CBAM) wealth management arm to private equity firm Oaktree Capital Management for £200m.

Oaktree plans to develop CBAM as an independent wealth manager.

CBAM, a signifiant UK Financial Planning provider, will use the new investment to expand the business "at pace."

The deal is subject to regulatory approval and is expected to complete in early 2025.

Oaktree has invested previously in UK wealth management businesses and says it will support CBAM as an “agile, independently run and standalone business.”

It plans to accelerate CBAM’s growth ambitions.

After the transaction, the business will continue to trade as CBAM during a transition period. A new name and head office will be announced in due course.

CBAM’s current executive committee, led by CEO Eddy Reynolds, will continue to lead the business with Oaktree adding expertise to the team.

CBAM’s CEO Eddy Reynolds said: “The acquisition of CBAM marks an exciting new chapter in the history of the company, following a strong period of investment and growth. Oaktree understands our business, they see the value in what we do, how we do it and the culture we have built.

"As an independent business supported by Oaktree we are now extremely well placed to continue to successfully pursue the strategy we set out in 2022, to make CBAM the best place in the UK for wealth professionals and their clients. This is a great opportunity for everyone at CBAM and I am extremely optimistic about the future. As ever, our clients remain our first priority and they will continue to enjoy the same service that they know and expect.”

Federico Alvares Demalde, managing director at Oaktree, said: “We are excited about the acquisition of CBAM, which represents a significant opportunity to further develop the business and strengthen its service offering. This new chapter will enhance the business agility, enabling a more effective response to market changes while providing a stable platform for our financial planners and investment managers to thrive. We are committed to supporting the business in improving its processes and becoming more customer-centric to meet the evolving needs of our clients.”

City of London-based CBAM provides advice, investment management and self-directed services to private clients and professional advisers. The business has offices in London, Birmingham, Bristol, Cheltenham, Chester, Chichester, Dorset, Edinburgh, Gatwick, Glasgow, Guernsey, Manchester, Newcastle, Northwich and Winchester.