Private equity group Warburg Pincus has revived the merger of wealth managers Tilney and Smith & Williamson (S&W), giving the deal a capital injection that will reduce the combined group’s debt.

The Financial Conduct Authority (FCA) blocked Tilney’s £625 million takeover of S&W, first announced in September 2019, saying it had concerns over the deal’s “structure” – believed to be an inference that the combined business would carry too much debt. Tilney is owned by private equity firm Permira and is highly leveraged compared with industry norms.

This Warburg Pincus capital would be an attempt to ...