Joint venture unveiled
Virgin and Aberdeen tie up asset partnership
Virgin expects investments to grow faster under the deal (photo by Terry Murden)
Aberdeen Standard Investments is to manage £3.7 billion funds held by 200,000 Virgin Money customers.
Under a joint venture ASI will acquire 50% of Virgin Money Unit Trust Managers for an upfront cash payment in excess of £40 million.
Th joint venture aims to broaden Virgin Money’s retail investment proposition.
Jayne-Anne Gadhia, chief executive at Virgin Money, said the relationship will give customers a “broader fund choice and the tools and capability to invest for the future with confidence”.
She said it is expected to generate significant growth in assets under management, drive additional capital-light returns and to be “game-changing” for Virgin’s investment business over the longer term.
Completion of the transaction is expected by the end of 2018.