Schroders' £9.9bn sale to US fund manager Nuveen has set off a chain reaction in the UK wealth management market, with the firm now divesting its Benchmark Capital financial planning arm to Swedish wealth firm Söderberg & Partners for an undisclosed sum.
Under the terms of the agreement, Schroders will transition from direct ownership of the financial planning business to becoming a long-term asset manager for Söderberg & Partners. The sale marks the culmination of Schroders' exit from the UK advice market, following its earlier departure from a joint advice venture with Lloyds and the disposal of its stake in Schroders Personal Wealth at the end of last year.
Söderberg & Partners, which boasts £108bn in assets under advice, has been rapidly expanding its presence in the UK since entering the market in 2023. The Swedish firm has acquired minority stakes in various advice firms and launched its own in-house platform, Seccl. Benchmark Capital operates three advice networks – Best Practice IFA, Oculus Wealth Management, and Evolution Wealth – alongside its own investment platform, Fusion Wealth.
Ed Dymott, Chief Executive of Benchmark, expressed confidence that the transaction would provide the necessary ownership structure and backing for the firm's next phase of growth. He highlighted Söderberg & Partners' commitment to substantial investment in the UK, aiming to deliver leading adviser solutions, technology, and service within the wealth business. Dymott also noted an emphasis on continuity, with minimal immediate changes expected for Benchmark.
The sale follows a transformative period for Schroders, which has agreed to its £9.9bn takeover by Nuveen, ending over two centuries of independent operation. The deal will create one of the world's largest active asset managers. While Schroders is exiting the UK advice market, it maintains a significant wealth management presence through Cazenove Capital, with chief executive Richard Oldfield pledging to retain the business post-takeover.
The acquisition of Benchmark Capital by Söderberg & Partners is awaiting approval from the Financial Conduct Authority (FCA) and is anticipated to be finalised by the end of the year. This deal reflects a broader trend of increased foreign investment in British and European asset management firms, with total sector deal value seeing a significant increase in recent years.