Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Investec Wealth: buy targets look overpriced

Investec Wealth: buy targets look overpriced

Investec Wealth & Investment has ruled out imminent acquisitions, saying the price tags that are being placed on some businesses in the sector are inflated.

Investec’s managing director Bernard Kantor told Wealth Manager that organic growth and hiring in teams are now central to the bank’s growth strategy in UK wealth management. It marks a change for Investec, which has been particularly acquisitive in recent years, with the buys of Evolution in 2011 and Rensburg Sheppards back in 2010.

While Kantor said the benefits of these deals are now feeding through in the wealth management division, contributing to a 30% operating profit rise over the year to the end of March, he said of hires: ‘I don’t think we will rush into the market to make an acquisition, as we can attract a lot of teams from some of the other players.

‘It takes time to integrate and bring assets on board and hiring is a lot cheaper than paying the multiples we have seen [for potential deals] as a percentage of funds under management. We are much happier with this strategy.’

‘I think Investec is in a very nice niche at the moment. It has a good reputation and name in the market. The business runs totally independently and wealth managers are not told what to do and we have never forced our product through their channels to the client. People like the approach and enjoy the environment. That has attracted a lot of good people over the last 12 to 18 months.’

Investec W&I has been busy on the recruitment front over the past year, with 13 hires from Deutsche and Barclays across its Edinburgh and Glasgow offices alone late last year.

Kantor added the firm will look to continue developing a more integrated private banking and investment management model in the UK.

He said the recent launch of a transactional banking card in the UK represented a significant step towards attracting new professional and high net worth clients.

Likewise, speaking to private banking clients about investment management will prove key. ‘We are already speaking to private banking clients and seeing if we can get them to move some of their wealth across to us,’ he added.

In the UK, Investec now has a presence across 16 cities and Kantor said the management team is largely happy with its regional presence, with no imminent plans to open new offices.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Mark Barnett - part 2: why I'm not buying Lloyds

Mark Barnett - part 2: why I'm not buying Lloyds

In the second part of our exclusive video interview, Barnett explains why he has no intention of buying Lloyds, and where he sees the greatest income opportunities.

Play Wealth managers reveal the best investment ideas of the year

Wealth managers reveal the best investment ideas of the year

From robotics to impact investing, wealth managers share the best ideas they have heard this year.

Play Baillie Gifford's Earnshaw on Xi Jinping's 'new era'

Baillie Gifford's Earnshaw on Xi Jinping's 'new era'

Sophie Earnshaw talks through what Xi Jinping's 'new era' means for investors. and why Chinese tech offers some of best growth stocks in the world.

Read More
Your Business: Cover Star Club

Profile: JM Finn on why the future is with financial planners

Profile: JM Finn on why the future is with financial planners

There is a lot of work on pension consolidation and Sipps have been a big driver there, says JM Finn chief executive

Wealth Manager on Twitter