Jewel in the crown for Investec after bank deal

The prize for Investec is Williams de Broe, one of the City’s oldest firms, which manages about £6bn of funds for wealthy private clients.

Williams de Broe, which has been part of Evolution Group since 2006, will sit alongside the former Rensburg Sheppards investment business, which Investec bought for £412m last year.

The Leeds office of Rensburg Sheppards, now known as Investec Wealth and Investment, employs 100 people. The office represents the amalgamation of former operations in Huddersfield, Bradford and Leeds which came together at the end of the 1990s.

Evolution Securities, the other half of the Evolution business, is a specialist broker and finance house, focused on the mid-cap corporate broking and research markets.

The group’s boss Alex Snow, who is a former rugby player for England and Harlequins, said Investec is a good home for the two main businesses.

Mr Snow, whose stake in the business is worth £5.6m under the terms of the takeover, has overseen rapid growth at Evolution in the last decade, merging with broker Beeson Gregory in 2002 and acquiring Williams de Broe in 2006.

Evolution failed in its attempt to acquire rival broker Panmure Gordon last year.

Mr Snow will become executive chairman of Investec’s UK investment banking division once the deal goes through.

“Williams de Broe will be able to maintain its growth and continue to provide its clients with a best in class independent wealth management service,” he said.

“Evolution Securities will benefit from being part of a larger well-capitalised investment bank with a strategy to be the leading mid-market investment bank in the UK.”

Evolution shareholders will receive Investec shares worth an equivalent 100.24p, a 45 per cent premium to the price before talks started.

Investec had been in a bidding battle with finance house Canaccord.

It was left a clear run when its rival dropped out of the race on Thursday.

Investec chief executive Stephen Koseff said there would be job losses following the acquisition, but these would be focused on the broking side rather than wealth management.

Mr Koseff said: “The transaction strengthens our position in the UK, giving us greater scale in both private client wealth management and investment banking.” He added that Investec would also consider further opportunities for deals.

Williams de Broe will still be run by current chief Philip Howell.

The Evolution Group’s Leeds office has four staff.