Virgin Money and Aberdeen Standard Investments (ASI) have signed an agreement for a new investment and pensions joint venture.
ASI will acquire 50 per cent of Virgin Money Unit Trust Managers Limited for at least £40m, the companies announced today, and take over the management of its £3.7bn retail assets.
The deal, which is designed to allow Virgin Money to provide customers with access to a broader range of funds, is expected to complete in the second quarter of the year.
Virgin Money was taken over by CYBG last year in a £1.7bn deal, and the group has a combined customer base of 6m.
CYGB chief executive David Duffy said: “We are delighted to take the next step forward in our partnership between Virgin Money and Aberdeen Standard Investments enabling us to provide innovative and attractive investment solutions across the Group’s 6m customer base through our national distribution.
“Using our brand and customer reach, combined with ASI’s clear asset management strengths we will be able to provide a truly compelling investment and pensions proposition to our retail customers.”
Aberdeen Standard Investments co-chief executive Martin Gilbert said: “The signing of the SPA that encompasses Virgin Money, Clydesdale Bank and Yorkshire Bank customers is an important milestone in progressing our joint venture with Virgin Money.
"The partnership offers a fantastic opportunity to develop a business that combines the best talents of Virgin Money and ASI.
“Most importantly, the joint venture will offer customers across the enlarged CYBG group, beyond Virgin Money’s existing customer base with investment solutions to help them achieve their long-term financial goals.”