Added to YB: 2026-08-27
Pitch date: 2026-08-18
RAT.L [bullish]
Rathbones Group Plc
+2.53%
current return
Author Info
DB_Silver_Fox is a CFO and value investor interested in: European & US hidden champions, simple and effective business models, and US Banks. Sign up for the newsletter.
Company Info
Rathbones Group Plc, together with its subsidiaries, provides wealth management, asset management, and related services in the United Kingdom and Channel Islands.
Market Cap
GBP 1.7B
Pitch Price
GBP 16.58
Price Target
N/A
Dividend
5.80%
EV/EBITDA
5.85
P/E
15.20
EV/Sales
1.76
Sector
Capital Markets
Category
special_situation
DB_Silver_Fox | Portfolio update as of 11.08.2026 - Rathbones Group Plc
RAT.L: Long RAT.L: market understates long-term earning power post Investec W&I UK acquisition (£43.7bn client assets, all-share). Thesis on well-structured deal: shares issued at ~£19.60 now bought back at ~1,650p (~15% cheaper) via £50m+£20m buyback, partially unwinding 77% share-count dilution; locks Investec in as 41% economic holder (voting capped 29.9%), so seller bears adviser/client attrition risk. Net debt/EBITDA 0.39x. Catalyst/overhang: 16 Jun 2026 s166 Skilled Person Review (UK Wealth — Consumer Duty, oversight/compliance) drove ~17-18% one-day drop. Risks: AUM-fee model, structural fee compression from passives, integration execution and net-flow delivery.
Read full article (2 min)