UK digital wealth manager Moneyfarm is buying pension adviser and consolidator Profile Pensions. Financial terms of the deal were not disclosed.
Profile Pensions is a UK digital pension adviser and consolidator, with approximately £870 million in assets under management and 24,000 customers.
The deal - subject to FCA approval - sees Moneyfarm make a play for a UK pensions industry that has seen strong growth in recent years, growing by 24% since 2016 to stand at £680 billion.
Profile Pensions has built a proprietary technology platform to automate pensions advice, tracing and consolidation. The firm's offering is delivered on a purpose-built, cloud native platform that it says is capable of scaling to service a customer base of millions.
The acquisition is being financed by Moneyfarm’s current shareholders M&G, Poste Italiane, Cabot Square Capital, United Ventures and Fondazione di Sardegna. As part of the deal, Profile Pensions investor Smedvig Capital will also become a minority shareholder in Moneyfarm.
Giovanni Daprà, CEO, Moneyfarm, says: "Through the acquisition of Profile Pensions, Moneyfarm will create an even greater opportunity for our clients to maximise the long term value of their assets by allowing them to easily consolidate their pensions investments alongside their normal investment, ISA and SIPP accounts, setting Moneyfarm apart from any other platform in the UK."
Earlier this year, Moneyfarm secured £44.1 million through a private placement that saw M&G acquire a minority stake in the company that also included a commercial partnership for the launch of a UK digital investment service under the M&G Wealth brand.