Rathbone Brothers has acquired the UK private banking business of Dexia Banque Internationale à Luxembourg, Ely Fund Managers. Rathbone’...

Rathbone Brothers has acquired the UK private banking business of Dexia Banque Internationale à Luxembourg, Ely Fund Managers. Rathbone’s said in a statement that it would pay £14 million ($24.6 million) for the business, although this was “ultimately dependent on the value of the funds under management transferred” to the London- and Liverpool-based private-client asset management firm. The acquisition gives Rathbones an additional £600 million in funds under management. Rathbones said that it had total funds under management of £9.5 billion, an increase of 23.4 per cent, at the end of 2005. The Dexia funds were not included in this total. Mark Powell, executive chairman of Rathbones said in a statement: “Added to this strong organic growth result (funds under management), the acquisition of Dexia’s UK private banking business is an excellent fit with Rathbones’ existing discretionary investment management activities and is consistent with our strategy for all acquisitions and recruitments.” Analysts said the acquisition by Rathbones comes after it failed in its bid to gain private client group Rensburg last year. “This was the second prize as far as Rathbones were concerned; the group will be looking for something bigger to acquire in the longer term,” said one analyst. Rathbones has being enjoying a favourable share price move over the last few months as investors have bought into the listed UK wealth management sector. Swiss-based investment management mergers & acquisitions specialist MilleniumAssociates advised Dexia on the acquisition. Rathbones was advised by itself.