UK digital wealth supervisor Moneyfarm is shopping for pension adviser and consolidator Profile Pensions. Monetary phrases of the deal weren’t disclosed.
The deal – topic to FCA approval – sees Moneyfarm make a play for a UK pensions trade that has seen robust progress in recent times, rising by 24% since 2016 to face at £680 billion.
Profile Pensions has constructed a proprietary know-how platform to automate pensions recommendation, tracing and consolidation. The agency’s providing is delivered on a purpose-built, cloud native platform that it says is able to scaling to service a buyer base of thousands and thousands.
The acquisition is being financed by Moneyfarm’s present shareholders M&G, Poste Italiane, Cabot Sq. Capital, United Ventures and Fondazione di Sardegna. As a part of the deal, Profile Pensions investor Smedvig Capital will even change into a minority shareholder in Moneyfarm.
Giovanni Daprà, CEO, Moneyfarm, says: “By the acquisition of Profile Pensions, Moneyfarm will create a fair better alternative for our purchasers to maximise the long run worth of their belongings by permitting them to simply consolidate their pensions investments alongside their regular funding, ISA and SIPP accounts, setting Moneyfarm other than another platform within the UK.”
Earlier this yr, Moneyfarm secured £44.1 million by a personal placement that noticed M&G purchase a minority stake within the firm that additionally included a business partnership for the launch of a UK digital funding service below the M&G Wealth model.