Close Brothers Group

Close Brothers Group plc is a United Kingdom-based merchant banking group whose principal activities have centered on specialist lending, deposit-taking, wealth management and securities trading. The business traces its origins to 1878, when William Brooks Close and his brothers Fred and James Close began providing farm mortgages in Sioux City, Iowa. Although the group’s historical roots are American, its modern identity and principal operating base are British, with London serving as its headquarters. The group’s banking activities have traditionally concentrated on relationship-based finance for small and medium-sized enterprises, individuals and specialist sectors that may not be served in the same way by large universal banks. Its Banking division provides lending and deposit products, including asset finance, property finance, motor finance and other forms of structured or specialist credit. The model emphasizes local expertise, underwriting knowledge and direct relationships rather than mass-market banking. Close Brothers has also developed businesses outside traditional lending. Its wealth management operations provide financial planning, investment management and related advice to private clients, families and business owners. The group expanded this area through acquisitions such as PMN Financial Management in 2021 and Bottriell Adams in 2023. Historically, the group also operated securities and corporate finance businesses. Winterflood Securities became a notable UK market-making operation, providing liquidity in listed securities and trading venues; in July 2025, Close Brothers announced an agreement to sell Winterflood to Marex for £104 million, subject to the applicable transaction conditions. The group’s corporate history includes a 1978 management buy-out and a 1984 listing on the London Stock Exchange. During the 1980s and 1990s it expanded through specialist acquisitions, including Winterflood Securities, Hill Samuel’s corporate finance division and Rea Brothers. It later reshaped its portfolio by separating Close Brothers Private Equity, disposing of its German securities business and selling Close Brothers Retail Finance to Klarna. Close Brothers is listed on the London Stock Exchange under the ticker CBG.L and has been associated with the FTSE 250 Index. Its recent history has been heavily affected by the regulatory and legal scrutiny of motor-finance commission arrangements. In 2024, a court found against Close Brothers and FirstRand Bank in litigation concerning undisclosed commissions paid to car dealers in connection with vehicle finance. In 2025, the group cancelled its dividend and indicated that it expected to raise approximately £400 million to address potential compensation and related legal costs. It also reported that approximately £300 million had been set aside for redress connected with the Financial Conduct Authority’s motor-finance review. These developments have made balance-sheet resilience, regulatory remediation and portfolio discipline central issues for the group’s current strategy.

Close Brothers began in 1878 when William Brooks Close and his brothers Fred and James Close established a mortgage business in Sioux City, Iowa, serving agricultural borrowers. The family’s early commercial activities extended beyond finance. In 1897, William Brooks Close paid the United States government for the right to construct Alaska’s first railway, the White Pass and Yukon Route. The later corporate group developed a substantially different profile, becoming a UK-centered specialist financial institution. A major ownership transition occurred in 1978, when the business underwent a management buy-out. Close Brothers subsequently became a public company through its first listing on the London Stock Exchange in 1984. During the 1980s and 1990s, the group pursued a strategy of building a portfolio of specialist financial businesses. Its acquisitions included Winterflood Securities in 1993, Hill Samuel’s corporate finance division in 1996 and Rea Brothers in 1999. These transactions broadened the group beyond lending into securities dealing, corporate finance and related merchant-banking services. In March 2008, Close Brothers acquired Commercial Acceptances Group, a UK short-term and bridging lender, for approximately £31 million. The group then undertook a substantial restructuring of its non-core activities. In December 2008, it confirmed that Close Brothers Private Equity would be separated from the group and become CBPE. In May 2009, Close Brothers announced that its corporate-finance business would be acquired by Daiwa Securities SMBC, a Japanese investment-banking venture. The business was subsequently associated with the DC Advisory name. After this reorganization, Close Brothers concentrated more clearly on lending, capital markets, securities trading and investment management. The group continued to reshape its geographic and product footprint. In 2014 it sold Close Brothers Seydler Bank AG, its German securities business, to Oddo & Cie. In September 2018, it sold Close Brothers Retail Finance to Klarna. These disposals reduced exposure to activities outside the group’s central specialist-banking model while allowing the remaining businesses to focus on UK lending, wealth management and securities operations. Expansion in wealth management resumed through acquisitions. In July 2021, Close Brothers bought PMN Financial Management, an independent financial advice firm based in Surrey, bringing approximately £300 million of assets. In September 2023, it acquired Bluestone Motor Finance in Ireland. In December of the same year, it agreed to acquire Bottriell Adams, a Dorset-based independent financial adviser, for £220 million. The group’s recent period has also been marked by serious regulatory and legal pressure. A 2024 court decision found against Close Brothers and FirstRand Bank in a case involving motor-finance commissions paid to dealers without adequate disclosure to vehicle purchasers. In 2025, Close Brothers cancelled its dividend and announced a planned capital raising of approximately £400 million to meet potential compensation and legal costs. It also disclosed an approximately £300 million provision for redress connected with the Financial Conduct Authority’s motor-finance scheme. These matters have become a defining feature of the group’s current financial and strategic outlook. In July 2025, Close Brothers announced the sale of Winterflood Securities to Marex for £104 million. The transaction represented another portfolio decision by a group seeking to manage capital, simplify its business mix and preserve capacity for its core banking and wealth-management operations.

1. 2025Winterflood sale announced

   Close Brothers announced the sale of Winterflood Securities to Marex for £104 million.

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2. 2023Bluestone Motor Finance acquired

   Close Brothers acquired Irish motor-finance provider Bluestone Motor Finance.

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3. 2023Bottriell Adams acquisition agreed

   The group agreed to acquire Dorset independent financial adviser Bottriell Adams for £220 million.

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4. 2021PMN Financial Management acquired

   The group acquired Surrey-based financial adviser PMN Financial Management.

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5. 2018Retail Finance sold to Klarna

   Close Brothers disposed of Close Brothers Retail Finance to Klarna.

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6. 2014German securities business sold

   Close Brothers sold Close Brothers Seydler Bank AG to Oddo & Cie.

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7. 2009Corporate-finance business transferred

   Daiwa Securities SMBC agreed to acquire the corporate-finance business, which became associated with DC Advisory.

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8. 2008Commercial Acceptances Group acquired

   The group acquired UK short-term and bridging lender Commercial Acceptances Group for approximately £31 million.

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9. 1999Rea Brothers acquired

   Close Brothers acquired Rea Brothers, a financial business established in 1919.

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10. 1996Hill Samuel corporate-finance division acquired

    The group acquired Hill Samuel’s corporate-finance division.

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11. 1993Winterflood Securities acquired

    Close Brothers acquired Winterflood Securities, expanding its securities-market activities.

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12. 1984London Stock Exchange listing

    The company was first listed on the London Stock Exchange.

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13. 1978Management buy-out

    Close Brothers became the subject of a management buy-out.

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14. 1897White Pass and Yukon Route concession

    William Brooks Close paid the US government for the right to build Alaska’s first railway, the White Pass and Yukon Route.

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15. 1878Business founded in Iowa

    William Brooks Close and his brothers Fred and James Close began a farm-mortgage business in Sioux City, Iowa.

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A relationship-led specialist banking group serving small and medium-sized businesses, individuals and professional investors rather than competing primarily as a mass-market universal bank.

• Close Brothers BankingSpecialist banking

  The Banking division provides lending and deposit-taking services to small and medium-sized businesses and individuals. Its specialist approach covers sectors and borrowing requirements where tailored underwriting, asset knowledge or relationship management is important. The division has historically included business finance, asset finance, property-related lending, motor finance and other forms of personal or commercial credit.

• Close Brothers Motor FinanceMotor finance

  The motor-finance business provides vehicle-finance products through relationships with dealers and customers. Its activities have become subject to legal and regulatory scrutiny over commission arrangements connected with dealer recommendations. The group’s acquisition of Bluestone Motor Finance in Ireland expanded its presence in this specialist lending segment.

• Close Brothers Wealth ManagementWealth management

  Close Brothers Wealth Management provides investment management, financial planning and related advisory services for private clients, families and business owners. The group has supplemented its organic wealth-management platform through acquisitions of independent advisory firms, including PMN Financial Management and Bottriell Adams.

• Winterflood SecuritiesSecurities trading and market making1993

  Winterflood Securities was a UK securities market maker within the Close Brothers group. It traded across relevant multilateral trading facilities and major dark pools and provided coverage across London Stock Exchange-listed securities, the Alternative Investment Market and other venues. Close Brothers announced its sale to Marex in 2025.

• 2025Capital response to motor-finance liabilitiesStrategy

  Legal and regulatory developments created potential compensation and litigation costs associated with motor-finance commission arrangements.

  What changed. Close Brothers cancelled its dividend and planned to raise approximately £400 million; it also disclosed approximately £300 million reserved for related redress.

  Aftermath. The decision prioritized capital preservation and regulatory remediation over shareholder distributions.

  Planned capital raising. Approximately £400 million (2025)

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• 2025Sell Winterflood Securities to MarexM&A

  Close Brothers reviewed its portfolio while managing capital requirements and focusing on core activities.

  What changed. It announced the sale of Winterflood Securities to Marex for £104 million.

  Aftermath. The proposed disposal would remove a major securities-market business from the group and further concentrate its operating profile.

  Sale consideration. £104 million (July 2025)

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• 2018Sell Close Brothers Retail Finance to KlarnaM&A

  The group continued to simplify its portfolio and reduce exposure to selected retail-finance activities.

  What changed. It sold Close Brothers Retail Finance to Klarna.

  Aftermath. The disposal shifted the group’s emphasis toward specialist banking, wealth management and core securities activities.

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• 2009Refocus after corporate-finance disposalStrategy

  The group reviewed its portfolio after separating Close Brothers Private Equity.

  What changed. It agreed to sell the corporate-finance business to Daiwa Securities SMBC, with the operation becoming associated with DC Advisory.

  Aftermath. Close Brothers became more concentrated on lending, capital markets, securities trading and investment management.

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• 2008Acquire Commercial Acceptances GroupM&A

  Close Brothers sought to expand its specialist lending capabilities in the UK.

  What changed. It acquired short-term and bridging lender Commercial Acceptances Group for approximately £31 million.

  Aftermath. The transaction broadened the group’s lending platform in specialist and short-duration finance.

  Acquisition consideration. Approximately £31 million (March 2008)

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• 2025Motor-finance redress and dividend cancellationControversy

  Close Brothers cancelled its dividend and disclosed substantial expected costs associated with borrower compensation, legal proceedings and the Financial Conduct Authority’s motor-finance scheme. The group also indicated that it had set aside approximately £300 million for related redress.

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• 2024Motor-finance commission litigationControversy

  A court ruled against Close Brothers and FirstRand Bank over motor-finance arrangements in which dealers received commissions for recommending loans without the commissions being adequately disclosed to vehicle buyers.

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• 2025Close Brothers agrees to sell Winterflood Securities to Marex

  Close Brothers announced the disposal of its Winterflood Securities business to Marex for £104 million.

  M&A
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• 2023Close Brothers acquires Bottriell Adams

  The group agreed to acquire Bottriell Adams, an independent financial adviser based in Dorset, for £220 million.

  M&A
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• 2023Close Brothers acquires Bluestone Motor Finance

  The group expanded its motor-finance activities through the acquisition of Bluestone Motor Finance, an Irish provider.

  M&A
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• 2021Close Brothers acquires PMN Financial Management

  Close Brothers acquired PMN Financial Management, a Surrey-based independent financial advice firm with approximately £300 million of assets.

  M&A
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• 2018Close Brothers Retail Finance sold to Klarna

  The group disposed of its retail-finance business to Klarna, the Swedish financial technology company.

  M&A
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1. Close Brothers Group
2. Close Brothers Group corporate website