Davy Private Clients UK (Davy) has acquired Danske Bank’s discretionary portfolio management wealth business for an undisclosed sum.
The deal involves the transfer of the management of more than 1,100 Danske Bank customer investment portfolios, which are currently managed by the bank’s investment centre. The management of these investment portfolios is scheduled to move by the end of October 2017. There will be no associated redundancies, with twelve Danske Bank employees expected to join Davy as part of the deal.
The agreement also sees Danske Bank make Davy its preferred referral partner for private banking customers seeking options to invest over £150,000.
Davy is Northern Ireland’s largest wealth manager, with overall assets under management across the United Kingdom and Ireland in excess of £12 billion. Davy has over 660 staff, including 65 in Northern Ireland.
Richard Caldwell, Managing Director of Personal Banking and Small Business at Danske Bank, said:
“This has been a good part of our business for many years thanks to the expertise, hard work and customer ethos of our wealth specialists who have been overseeing assets under management of around £500 million. However, after a strategic review looking at anticipated future costs and regulatory change, it became clear that the best way forward for our customers was to have support in this area from a specialist wealth management company.
“We are delighted to have found in Davy a locally-based, leading national wealth business that has a track record of strong delivery for customers. Moving forward Danske Bank will continue to invest in and grow its core personal and business banking operations, whilst offering a wealth management proposition to customers through external providers.”
Stephen Felle, Chief Executive (UK) of Davy, said:
“We are delighted to welcome Danske Bank’s discretionary Wealth Management customers and the associated staff to Davy. Over our 90 year history, Davy has focused on making a difference that matters to our customers. The addition of Danske Bank’s business gives us an opportunity to build long-term relationships with a new group of customers. It also underpins Davy’s position as the leading wealth manager in Northern Ireland and opens a new era of partnership between two leading financial institutions.”
Davy has acquired a number of Northern Ireland investment and wealth advisory businesses in recent years, including PFC, Graham Corry Cheevers and Square Seven Financial Planning.