Schroders has agreed to sell its financial planning arm Benchmark Capital to Swedish financial advisory firm Soderberg & Partners, marking a strategic exit from the UK financial planning market. The deal, announced on Tuesday, is part of Schroders' broader plan to streamline its operations and concentrate on its core asset management business.
Transaction Details
Under the terms of the agreement, Soderberg & Partners will acquire Benchmark Capital, which provides financial planning and wealth management services to clients across the UK. The acquisition includes Benchmark's network of advisers and its client base. Financial terms of the deal were not disclosed.
Benchmark Capital was acquired by Schroders in 2014 as part of its expansion into the financial planning sector. However, the asset manager has recently been reviewing its business lines to focus on areas where it has the strongest competitive advantage.
Strategic Rationale
“This sale is a further step in the simplification of our business and allows us to focus on our core asset management capabilities,” said a Schroders spokesperson. “We believe Soderberg & Partners is the right owner to take Benchmark forward.”
The move aligns with Schroders' strategy to concentrate on investment management and solutions, where it manages over £700 billion in assets. The company has been shedding non-core assets to improve efficiency and profitability.
Buyer's Perspective
Soderberg & Partners, a leading Swedish financial advisory and insurance brokerage firm, sees the acquisition as a key step in its international expansion. “Benchmark Capital is a well-respected business in the UK, and we are excited to welcome its team and clients,” said a Soderberg representative. “This acquisition strengthens our presence in the UK market and supports our growth ambitions.”
The deal is expected to close in the first half of 2024, subject to regulatory approvals.
