Britain’s Schroders (SDR.L) is reportedly exploring strategic options for its financial planning business, Benchmark Capital, including a potential sale, according to sources familiar with the matter. The move comes as Schroders seeks to expand its wealth management franchise and focus on serving more affluent clients.

Schroders’ Strategic Shift

Under the leadership of CEO Richard Oldfield, Schroders has been emphasizing growth in its wealth management division, particularly targeting high-net-worth and mass-affluent clients. This focus has included bolstering services through its Cazenove division, which caters to affluent individuals and institutional investors.

Benchmark Capital, which provides financial planning services to over 1,000 adviser clients, had £37.1 billion ($49.3 billion) in assets under management as of September 2025, according to Schroders’ third-quarter trading update. The company has hired advisers, including Perella Weinberg Partners, to explore the sale of Benchmark, although discussions are at an early stage and a sale may not ultimately materialize.

Private Equity Interest

Sources indicate that private equity firms have expressed interest in Benchmark Capital, attracted by its position in the mass-affluent wealth management market. While Benchmark is considered less profitable than Schroders’ Cazenove business, it presents strong growth potential, particularly if Schroders decides to retain and invest further in its expansion.

A Schroders spokesperson said:

“Benchmark is a business with strong growth prospects and ambitious plans to further accelerate expansion in 2026 and beyond. As a matter of policy, we do not comment on speculation and we remain focused on investing in the business and executing our ambitious multi-year growth plans.”

Recent Corporate Moves

Schroders recently ended its joint venture in mass-affluent wealth management with Lloyds Banking Group (LLOY.L). In October, Schroders swapped its 49.9% stake in the venture for Lloyds’ 19.1% stake in Cazenove, further consolidating its focus on high-net-worth clients.

The company is evaluating whether selling Benchmark, accelerating its growth, or a combination of both would best support its long-term strategic goals. Analysts note that Benchmark’s strong growth potential makes it a valuable asset in Schroders’ multi-year expansion plan.