UK's Schroders examines options for Benchmark business, sources say

By Amy-Jo Crowley, Andres Gonzalez and Iain Withers

LONDON, Dec 3 (Reuters) - Britain's Schroders is exploring possible options for its financial planning business Benchmark Capital, including a potential sale, two people familiar with the matter said.

Under CEO Richard Oldfield, money manager Schroders has been looking to expand its wealth business, with a bigger focus on more affluent clients, including through its Cazenove division.

Schroders has hired advisers to explore a sale of Benchmark, the people told Reuters. Benchmark had 37.1 billion pounds ($49.3 billion) in assets under management as of September this year, the money manager's third quarter trading update showed.

"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," a Schroders spokesperson said in an e-mailed statement to Reuters.

Discussions are at an early stage and a sale may not materialise, said the people, who spoke on condition of anonymity because the matter is private.

Schroders is working with investment advisory firm Perella Weinberg Partners, one of the people said. Perella did not immediately respond to a Reuters request for comment.

Private equity firms have expressed interest in Benchmark, which is focused on the mass affluent sector of the wealth management market and offers financial planning services to more than 1,000 adviser clients, they added.

Schroders could also retain Benchmark and explore options to accelerate its growth, one of the people said.

"Benchmark is a business with strong growth prospects and ambitious plans to further accelerate expansion in 2026 and beyond," the Schroders spokesperson said.

Schroders ended its joint venture in mass affluent wealth management with Lloyds Banking Group in October by swapping its 49.9% stake for Lloyds' 19.1% stake in Cazenove.

Analysts have previously said that Benchmark is less profitable than Cazenove.

($1 = 0.7533 pounds)

(Reporting by Amy-Jo Crowley, Andres Gonzalez and Iain Withers in London; Editing by Anousha Sakoui, Elisa Martinuzzi, Dhara Ranasinghe and Alexander Smith)