Schroders is reportedly on the verge of selling its financial planning business, Benchmark Capital, which provides services to independent financial advisers. Financial advice network Openwork, backed by private equity firm Bain Capital, is the frontrunner to acquire Benchmark in a deal estimated to be worth approximately £200 million. Sky News initially reported on the shortlisted bidders and the potential valuation, with other contenders including Soderberg (part-owned by KKR) and Advent International.
This divestiture aligns with Schroders' broader strategic shift towards focusing on ultra-high-net-worth clients and institutional asset management. The sale process is being overseen by bankers at Perella Weinberg Partners and comes as Schroders itself prepares for a £9.9 billion takeover by US investment manager Nuveen, part of the Teachers Insurance and Annuity Association of America. Nuveen's acquisition, announced in February, is set to create one of the world's largest global active asset managers with nearly $2.5 trillion in assets under management.
Benchmark Capital, established in 1993 as Ian Cooke & Partners, has grown significantly, now holding over £26 billion in assets under administration. Beyond direct financial planning, it offers technology and compliance services to over 1,000 other financial advisers. Schroders initially acquired a stake in Benchmark in 2016, taking full control two years later. The potential sale indicates Schroders' move to streamline operations ahead of its integration into Nuveen, further simplifying the combined group's structure.
The sale also reflects a broader trend of consolidation within the wealth management sector, with private equity firms showing significant interest in advice platforms that offer recurring revenue and scalability. Benchmark's dual role in providing financial planning and essential infrastructure to other advisers makes it a valuable asset in this evolving market. This move allows Schroders to concentrate its resources on managing and expanding its Cazenove division, which caters to more affluent clients, while Benchmark continues to serve the mass affluent sector under new ownership.
