Raymond James Moves to Buy $38B Wealth Firm

By Janet Levaux

News July 29, 2021 at 08:29 AM

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Raymond James has made an offer to purchase U.K.-based Charles Stanley Group for about $387 million, which would add about $38 billion (£27 billion) in assets and 200 wealth managers. As a result, Raymond James' operations in the United Kingdom could have roughly $56 billion (£40 billion) in assets.

"We have long admired Charles Stanley's reputation, heritage and its talented pool of wealth managers and professionals," said Raymond James CEO Paul Reilly, in a statement.

"We both offer employed and self-employed affiliation models, while Raymond James also provides platform services, enabling the flexibility that wealth managers value," Reilly added.

The deal, which is subject to U.K. Financial Conduct Authority and Charles Stanley shareholder approval, is expected to close in the fourth quarter of 2021.

According to Raymond James, the acquisition should "greatly accelerate" the growth of its newly launched employee affiliation model in the U.K. In addition, the firm says it doesn't expect the deal to "result in the need for staff reductions at either firm."

Sir David Howard, Charles Stanley's former CEO and current chairman, will stay on as chairman of Charles Stanley. Paul Abberley and Ben Money-Coutts will continue as that firm's CEO and CFO, respectively.

Raymond James U.K. CEO Peter Moores is set to have overall responsibility for the respective U.K. businesses of Raymond James and Charles Stanley. In addition, Raymond James says it plans to "replace some or all of Charles Stanley's other non-executive directors" after the deal is completed.

Raymond James has some 8,400 financial advisors, and total client assets of $1.17 trillion.

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