NatWest Group Plc is in advanced talks with investors to create a specialized risk transfer mechanism tied to its commercial real estate loan portfolio. This strategic move aims to bolster the bank's capital reserves ahead of its planned acquisition of Evelyn Partners, a UK wealth manager.

The transaction would allow NatWest to offload potential losses from CRE loans while maintaining exposure to the asset class, addressing regulatory capital requirements. Evelyn Partners represents a significant strategic pivot for NatWest, targeting high-net-worth clients and expanding its wealth management footprint. NatWest seeks to strengthen its balance sheet for the acquisition, which values the target at approximately $2.1 billion. This deal underscores the bank's focus on capital optimization amid competitive pressures in retail banking.