Aberdeen Standard Investments (ASI) and Virgin Money have agreed to partner to create an asset manager.
Under the terms of the agreement ASI will acquire 50% of Virgin Money's unit trust business for ‘in-excess’ of £40 million, and will run Virgin Money’s £3.7 billion of client assets. The business currently has over 200,000 retail investment clients.
Virgin Money will focus on retail distribution for the joint venture. The deal is expected to close before the end of 2018.
Following the end of this deal SLA agreed to sell its life company division to closed book consolidator Phoenix. Under the arrangement SLA has set itself up to pitch for £26 billion of assets managed by Phoenix.
Martin Gilbert (pictured), co-chief executive at ASI, said the new relationship would be 'strong and profitable' for both parties.
Jayne-Anne Gadhia, chief executive at Virgin Money, said the strengths of both companies would be reflected in the joint venture.
'We look forward to using our brand and customer reach, combined with ASI’s strength in asset management and its digital capability, to provide a market-leading customer proposition.
‘This mutually beneficial relationship will give our customers a broader fund choice and the tools and capability to invest for the future with confidence.'