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LONDON, Feb 27 (Reuters) - European private equity fundPermira said on Thursday it had agreed to buy investment managerTilney from Deutsche Bank as it looks to create awealth manager with 9 billion pounds ($15 billion) of assets.
The new company will be created by merging Tilney's regionalbusinesses with Bestinvest, an investment adviser firm acquiredby Permira last year with 5.1 billion pounds of assets undermanagement, to help broaden the reach of both firms.
"This will propel the combined group right up to the top ofthe table in the UK market," said Jason Hollands, ManagingDirector at Bestinvest.
Tilney provides investment services to wealthy individualsand controls 3.5 billion pounds of assets. It is currently ownedby Deutsche Asset and Wealth Management (A&W).
Permira, which is awaiting regulatory approval for itsacquisition of Bestinvest from 3i in November 2013, ishoping to create large managers from what it called a"fragmented" industry populated by smaller firms.
"They were very clear (when they took over) that they sawconsolidation opportunities in the industry," said Hollands.
The interest of bigger players in the UK fund industry alsoarose on Wednesday when US hedge fund Elliott Managementacquired derivatives equivalent to a stake of almost 11 percentin Britain's F&C Asset Management.
The deal will see Bestinvest take over Tilney's regionaloffices in Birmingham, Edinburgh, Glasgow and Liverpool,expanding its footprint in the areas, while allowing Tilney tocapitalise on Bestinvest assets such as its online platform.
Deutsche A&W will retain Tilney's London office. The mergeris subject to regulatory approval and is expected to becompleted in the second quarter of 2014.
Private assets under management in Britain totalled almost50 billion pounds in 2013, data from Private Asset ManagersOnline showed.
Permira were advised by Freshfields Bruckhaus Deringer andFenchurch Advisory. Deutsche A&W was advised by its in-house M&Ateam and Clifford Chance.
