ROYAL Bank of Scotland owner NatWest Group has offloaded part of its Adam & Company private banking operation, including the brand name.

Canaccord Genuity Group has acquired the investment management business of Adam & Co in a cash deal worth £54 million. It comes two months after speculation emerged that NatWest was exploring the sale.

The deal does not include Adam & Co's banking and lending business, which will now be rolled into the Coutts private bank operation. A Coutts Scotland team will be created and operated across three locations, while the Adam & Co business in London will be integrated into Coutts Coverage, NatWest said.

The number of staff affected has not been disclosed.

Canadian group Canaccord said the deal takes its UK wealth management operation into Scotland for the first time, while increasing assets under management by around £1.7 billion. It said that existing direct relationships between Adam & Co clients and portfolio managers will not be affected.

Canaccord said in a statement that it is CGWM UK’s intention to establish a new office location for the Adam & Co investment management business in central Edinburgh during the period while the deal completes.

A retention plan will be implemented for key employees based on client assets and continued employment over a four year period, it added.

The Adam & Co name will be retained by Canaccord Genuity Wealth Management UK, and the business will continue to be led by Graham Storrie, managing director of Adam & Co.

Mr Storrie said: “To build on the success of Adam & Company’s investment management business it was essential to find a buyer who shared our investment philosophy and strategic ambitions for the future. I believe that with CGWM, we will be able to offer our clients in Scotland and beyond the continuity and high quality service they deserve, and I am delighted to have the opportunity to continue to lead this business.”

David Esfandi, chief executive officer of CGWM UK, said: “Entering the Scottish market represents a very important milestone in our long-term growth strategy and we are pleased to be doing so with Adam & Company’s investment management business, a leading regional franchise with a strong cultural fit and a similar client base to our own.

“We are delighted to welcome this team of deeply established investment professionals, and we look forward to supporting their continued growth and commitment to providing the best possible outcomes for their clients.”

Adam & Co held £1.6bn of assets under management and generated revenue of £12.5m in the year ended December 31.

The deal is expected to be completed by the end of Canaccord's second fiscal quarter.