Aberdeen Standard Investments (ASI) has agreed to acquire a 50% stake in Virgin Money Unit Trust Managers in a deal worth over £40m as part of a joint venture between the two companies.
The management of Virgin Money’s 200,000 retail investment customers and £3.7bn of assets will be handed over to ASI as part of the deal.
Through the partnership, Virgin Money plans to enhance its retail investment offering by leveraging ASI’s fund management services and digital technology.
Virgin Money CEO Jayne-Anne Gadhia said: “This mutually beneficial relationship will give our customers a broader fund choice and the tools and capability to invest for the future with confidence. As a result, it offers a compelling proposition for our customers and offers excellent value for our shareholders.
“It is expected to generate significant growth in assets under management, drive additional capital-light returns and to be game-changing for our investment business over the longer term.”
The deal is expected to raise Virgin Money’s CET1 ratio by around 40 basis points. The deal is expected to be wrapped up by the end of this year, subject to regulatory nod.
ASI co-CEO Martin Gilbert said: “We’re delighted to be partnering with Virgin Money to develop their retail investment business. Their customer focus mirrors that of Aberdeen Standard Investments and we look forward to working together and sharing a strong and profitable relationship over many years to come.”