WEALTH managers Quilter and Cheviot have confirmed plans to merge.

The two firms, which both have Liverpool offices, confirmed last month that merger talks were ongoing – and today confirmed they would join forces to create a firm called Quilter Cheviot with more than £12bn of assets under management.

The deal has been funded by Bridgepoint, the private equity firm that owns Quilter, and is set to complete before the end of the year subject to regulatory approval. The terms of the transaction have not been disclosed.

Quilter Cheviot will combine Quilter’s £8.2bn of funds under management with Cheviot’s £4.1bn. The combined group will be led by chief executive Martin Baines, Quilter’s current chief executive. Cheviot’s chief executive Michael Kerr-Dineen will join the holdings board of Quilter Cheviot and act as a senior adviser to the firm.

Mr Baines said: “We have made no secret of our intention to join forces with complementary businesses to accelerate our growth and there is a really strong fit between the two firms.

“The many synergies will benefit all of our clients and, as a combined business managing over £12bn of assets, we will have the scale and resources to be an even more powerful contender in the private client wealth management sector.”

Mr Kerr-Dineen said: “Cheviot has had a tremendous run of success since we started out in 2006. This transaction is recognition of all we have achieved and provides us with far greater scale and geographic reach and will enable us to enhance our client services and capabilities still further.

“Quilter shares many of our values and aspirations and we are all looking forward to working with our new colleagues. The creation of Quilter Cheviot will provide wealth management clients with a tremendous source of advice, experience and security in today’s uncertain financial markets.”

Stephen Green, the partner responsible for Bridgepoint's UK investment activities, said: “Scale as well as investment excellence are increasingly important in building businesses like Quilter.

“This acquisition brings together some of the best people in the fund management industry and goes some way to reinforcing Quilter Cheviot’s position as one of the UK’s leading private client investment management firms.”