UK- Rothschild is putting its institutional and retail investment management businesses up for sale in a move that will see the privately-held group focus on its private banking business.

In a statement Rothschild said it was “exploring various options for the future…including a potential alliance with, or sale to, a larger group.”

Rothschild AM manages more than £13bn in funds and returns are believed to be adequate but it maintains its operations lack the scale to compete with larger managers.

Mark Connolly, global head of institutional business, said: “RAM has made considerable progress in recent years in terms of high quality personnel recruited, new business growth and in many areas of investment performance.

“However, the group does not believe that the critical mass necessary for the continued provision of a high quality service will be achieved by organic growth alone.”

Rothschild will hold discussions with interested parties in the next few weeks and hopes to reach a decision by the end of the year.

As part of the re-shuffle, Rothschild has appointed Mike Bussey as head of its new private banking operation which will include its relevant international business.