Schroders is reportedly close to selling its financial planning unit, Benchmark, for more than £200 million. This potential sale follows Schroders' agreement to be acquired by US investment manager Nuveen for £9.9 billion. Benchmark, established in 1993 as Ian Cooke & Partners, manages over £26 billion in assets under administration and offers technology and compliance services in addition to financial planning.
Several private equity firms have expressed interest in Benchmark, with Hg, Towerbrook, Vitruvian Partners, and US buyout firm Aquiline Capital Partners reportedly submitting initial offers. Bankers at Perella Weinberg Partners are said to be overseeing the auction process.
Schroders initially acquired a stake in Benchmark in 2016, taking full control two years later. The potential divestiture aligns with a broader trend of Schroders focusing on more affluent clients, moving away from the mass-affluent sector served by Benchmark. Benchmark had £37.1 billion ($49.3 billion) in assets under management as of September, and £32 billion ($42.4 billion) supporting over 1,000 financial planners, according to other reports. While Schroders spokesperson declined to comment on speculation, they emphasized Benchmark's strong growth prospects and ambitious expansion plans.
This move comes as Schroders has been looking to expand its wealth business, particularly focusing on more affluent clients through its Cazenove division. The company also recently ended its joint venture in mass affluent wealth management with Lloyds Banking Group in October, strengthening its position in Cazenove.
