Evelyn Partners Group has reached a binding agreement to sell its professional services business to funds advised by Apax Partners.

The transaction is expected to complete in the first quarter of 2025, subject to regulatory approval.

Upon completion of the deal, the professional services business will be rebranded to S&W, resulting in two standalone businesses: Evelyn Partners, a pure-play UK wealth manager, and S&W, a professional services firm in the accountancy mid-market.

The separation will mean that both firms have their own dedicated management teams and capital bases, and their strategies and funding will each be fully focused on their respective growth plans.

As part of the business separation, both firms have committed a “strong ongoing relationship to support mutual clients and growth opportunities”.

S&W will have around 1,600 employees and more than 121 partners operating across 15 offices around the UK, Republic of Ireland, and the Channel Islands.

Its services will span business and private client tax advice, assurance and business services, and a suite of advisory and digital services that include recovery and restructuring, forensic services, and transactions.

In collaboration with S&W’s management team, the Apax Funds will seek to support S&W and invest in its next growth phase as an independent business by consolidating its position through strategic mergers and acquisitions (M&A).

The funds will also provide their expertise to “help S&W execute on go-to-market and cross selling initiatives”, and explore complementary service lines with the aim of best supporting its client needs.

As part of the separation, Evelyn Partners chief professional services director, Andrew Wilkes, will become chief executive officer (CEO) of S&W, and Evelyn Partners group chief financial officer (CFO), Andrew Baddeley, will take up the role of CFO of S&W.

Commenting on the deal, Evelyn Partners CEO, Paul Geddes, said: “Evelyn Partners has demonstrated the strength and resilience of its business model since the merger [of Tilney and Smith & Williamson] in 2020.

“The growth of both our Financial Services and Professional Services businesses means that this is the right moment to sharpen our focus further by creating two strong standalone businesses, each concentrated on the growth opportunities in its sector.

“Importantly, we are committed to a strong, ongoing relationship so our mutual clients will see complete continuity in the teams that support them. Plans for an orderly separation are well advanced and I am grateful to the many colleagues across both businesses who have been involved in this. As well as being positive for our clients, the transaction will also create value for our investors, including the many colleagues who are shareholders.

“Following completion of the transaction, we will focus on extending the position of Evelyn Partners as one of the UK’s largest wealth managers. The strength of our dual expertise in both financial planning and investment management places us in an excellent position to support and attract clients in an environment when the demand for expert advice is exceptionally high.”

S&W CEO designate, Andrew Wilkes, commented: “Our Professional Services business has experienced a period of very strong growth in recent years, attracting top talent at all levels and expanding the range of services which we provide. More recently, we have launched our M&A programme, completing seven deals.

“We are seeing significant growth opportunities in the market and the whole team are very excited about our partnership with Apax Partners. The new funding and expertise that Apax brings will help accelerate our growth strategy.

“As we look ahead to a standalone future, the relationship with Evelyn Partners will be an enduring one as we continue to provide a joined-up service for shared clients, as well as identify new opportunities to work together.”

Apax partner, Frank Ehmer, added: “We have been tracking the accountancy and advisory space for a number of years and prioritised S&W as the ideal UK platform to invest behind.

“Throughout our engagement, it became immediately clear to us that S&W is a true market-leading player in the mid-market segment, and holds an unrivalled heritage and reputation from which the business can look to scale new heights.

“We are excited to partner with Andrew and the entire S&W team in this exciting new chapter as an independent business.”

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