Close Brothers to sell wealth management arm to Oaktree Capital Management for £200m

Close Brothers Asset Management

Close Brothers Group has agreed to sell its wealth management business, Close Brothers Asset Management (CBAM), to funds managed by Oaktree Capital Management for up to £200m.

In a stock exchange notice today (19 September), Close Brothers said the equity value of up to £200m represents a multiple of 27x CBAM's statutory operating profit after tax for the year to 31 July 2024, and includes a £28m of contingent deferred consideration in preference shares. Close Brothers CEO takes temporary medical leave of absence The group will retain all upfront cash proceeds from the sale, around £172m – of this, a cash consideration of £146m will be paid on completion and a dividend of £26m will be paid by CBAM to Close Brothers on or before completion. The contingent...