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M&G to launch robo advisory service in UK; takes minority stake in Moneyfarm

Digital wealgh manager Moneyfarm is to raises £44.1 million through a private placement that will see M&G acquire a minority stake in the company.

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M&G to launch robo advisory service in UK; takes minority stake in Moneyfarm

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The capital increase was led by M&G and included Poste Italiane S.p.A, who has been a minority shareholder in Moneyfarm since 2019. Since it launched in 2012, Moneyfarm has raised £139m.

The raise comes after a successful 2021, with assets under management increasing 72%, positive net inflows of 128% and a 73% increase in new customers compared to 2020. Moneyfarm now has over 80,000 clients and over £2.2b in AuM.

In addition to the fund raise, Moneyfarm and M&G signed a commercial partnership for the launch of a new UK digital investment service under the M&G Wealth brand. M&G will use Moneyfarm's platform-as-a-service to offer a robo advisory product aimed at the "next generation" of retail customers in the UK.

Designed by M&G Wealth, the new direct digital service will be tailored to meet a range of customer risk appetites and profiles through a collection of multi-asset model portfolios, backed by a selection of actively-managed and passive funds.

The arrangement is similar to previous B2B2C deals struck by Moneyfarm with Poste Italiane, Uncredit and Banca Sella.

Giovanni Daprà, co-founder and chief executive at Moneyfarm, says: "Our distinctive partnerships with established players in the industry such as Poste Italiane, Allianz and UniCredit demonstrate the real value that can be created by combining the agility and innovation of a direct, digital fintech business with the scale and experience of an established provider."

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Comments: (1)

A Finextra member 

interesting News. So much ore I ask myself why Moneyfarm fail in Germany after 1 Year of Market-Presence - especially under the Aspect of a Partnership with Allianz and the "purchase" of an already well-established German Robo-Advsior named "Vaamo". 

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