LONDON (Reuters) - Barclays (BARC.L) has sold its offshore trust business to an independent investor group but will keep a 20 percent stake in the new company, renamed as ZEDRA, for at least three years.
The sale marks another step in the British bank’s efforts to simplify its wealth and investment management activities.
“Barclays holds a minority stake ... which demonstrates our interest in the ongoing success of this business,” a Barclays spokesperson said. The bank said in June last year it planned to sell the business following an internal review.
The price was not disclosed.
The independent investor group, led by the Sarikhani and Nielsen families, plans to expand the business, which has 300 staff and offices in Jersey, Guernsey, the Isle of Man, the Cayman Islands, Singapore, Britain and Switzerland.
Under its new management, ZEDRA aims to double the size of the business within five years.
“In terms of expansion plans, we will be hiring in all our main locations and also offer additional services to existing clients – this is where the growth will come from,” new Chief Executive Niels Nielsen said.
”Barclays’ keeping a stake in the new company sends a signal to clients and staff that it stands behind the business.“
The Sarikhani and Nielsen families have significant experience in trust and financial planning businesses and have invested in and contributed to the development of several financial advisory companies including Vistra Group, Kinetic Partners and Chiltern Group.
Reporting by Jane Merriman, editing by Louise Heavens