Brown Shipley chief executive Ian Sackfield has said the business will not simply do deals ‘for the sake of it’ and has stressed it is under no pressure from Qatari backer Precision Capital to do so.
His comments come as the private bank engages in what are understood to be late-stage negotiations to buy Jupiter’s wealth management business, which is also being targeted by Rathbones and Close Brothers Asset Management.
‘We are not going to make an acquisition for the sake of it. Our shareholder is fully supportive if we want to make an acquisition or don’t. They are hands-off shareholders and talks have been run by Brown Shipley.
‘It is not the be all and end all if we make an acquisition. It has to be one that fits at a sensible price. We have not got acquisitions in our business plan,’ Sackfield (pictured) said.
Incoming private bank head Hugh Titcomb added: ‘If you look at the industry, there is an awful lot of change and an awful lot of change will happen. For the right opportunity I think we are well placed to take advantage of that.
‘Developing our business is not based on acquisitions. It has to be a real fit and genuinely able to add value to the business rather than it being a scale game.’
Titcomb said the business has a £10 billion asset target in its sights. While he was reticent to specify a timeframe, he is positive on the private bank’s prospects, having had its best year in growth terms since 2006.
‘I think there is an opportunity to do something here, where it is about having integrated investment management, private banking and wealth planning. I think it is a compelling proposition. We are at £3.5 billion, but wouldn’t it be great to get to £10 billion?’ Titcomb said.
He said the strongest growth in the business had been where they are providing investment management alongside either private banking or financial planning.
‘Our fastest growing business is where we are doing more than one thing for the client. This is where we are seeing organic growth, it is about providing something else plus investment management,’ he said.
One year on from the retail distribution review and as fee structures remain the topic du jour, Sackfield said the group underwent a tariff review 12 months ago. The average discretionary client now has an average an all-in charge of 115 to 120 basis points, he said.