ASI signs £40m tie-up with Virgin Money
Aberdeen Standard Investments (ASI), the fund management arm of Standard Life Aberdeen, is a step closer to a joint venture with Edinburghbased bank Virgin Money.
ASI will acquire 50 per cent – less one share – of Virgin Money Unit Trust Managers for an upfront cash payment of at least £40 million to create a new investment and pensions joint venture, after the parties signed a sale and purchase agreement.
ASI will also take control of the bank’s £3.7 billion funds under management.
The proposed tie-up, which is subject to regulatory approval, is designed to broaden Virgin Money’s retail investment proposition, allowing it to offer a wider range of funds.
As a result of CYBG’S £1.7bn acquisition of Virgin Money in October last year, the joint venture will eventually give ASI access to the banking group’s base of about six million customers.
The move follows an agreement in principle made in March 2018 and the transaction is expected to be completed in the second quarter. David Duffy, chief executive of CYBG, said: “We are delighted to take the next step forward in our partnership between Virgin Money and ASI, enabling us to provide innovative and attractive investment solutions across the group’s six million customer base, through our national distribution.”
Martin Gilbert, co-chief executive at ASI, said: “The partnership offers a fantastic opportunity to develop a business that combines the best talents of Virgin Money and ASI.” 0 ‘Delighted’: David Duffy, chief executive of CYBG