Platform deal

Virgin Money buys Abrdn’s stake in joint venture

Virgin Money
Virgin Money will bring the investments together with other products (pic: Terry Murden)

Virgin Money, the Glasgow and Newcastle based bank, is buying abrdn’s 50% stake in its investment platform for £20 million, less than a year after it was launched to customers.

The two joined forces in 2019 to form Virgin Money Investments to expand on Virgin’s range of savings and loans products. A digital platform, including a mobile app, was launched last April with a pension product added in November.

By the end of 2023 Virgin Money Investments was managing about £3.7 billion worth of assets and more than 150,000 customer accounts.

The acquisition of Abrdn’s stake in the platform involves a cash payment of £20 million, funded from Virgin Money’s capital resources.

Allegra Patrizi, managing director for business and commercial at Virgin Money, said: ‘Our joint venture with abrdn has successfully delivered a new investment service offering simple and straightforward investment options for customers.

“Taking full control of Virgin Money Investments will mean we can bring the investments and pensions business together with our deposits, mortgages, credit cards and daily banking, enabling us to help more customers feel confident to invest for the future and driving significant growth in assets under management.”

The bank intends to move all staff from the investments arm into Virgin Money, and said it is not expecting there to be any job losses. Abrdn will continue to provide investment advice for the platform.

Leave a Reply

Your email address will not be published. Required fields are marked as *

This site uses Akismet to reduce spam. Learn how your comment data is processed.