M&G, which has over GBP 370 billion of assets under management and administration, will take a minority stake in Moneyfarm as part of its funding agreement. The exact stake taken by M&G, a first-time investor in Moneyfarm, has not been disclosed.
Poste Italiane, which is also a Moneyfarm shareholder, is also investing in the round, which will be completed by the end of the first quarter of 2022. To date, Moneyfarm, which was founded in 2012, has raised a total of GBP 139 million. Moneyfarm, which has over 80,000 clients and over GBP 2.2 billion assets under management, said the funds will be used in three areas.
These will be to bolster its product offering; supporting future development and building partnership models by offering its digital wealth management as a module for other financial institutions to integrate.
As part of the agreement between Moneyfarm and M&G, M&G will launch a UK digital investment platform under the M&G Wealth brand, its wealth management arm, for ‘the next generation of savers’. It will utilise Moneyfarm’s Platform-as-a-Service, which has also already been used by financial outfits including Allianz and UniCredit.
It will offer a collection of multi-asset portfolios, backed by actively-managed and passive funds, utilising Moneyfarm's technology and digital prowess. Explaining the rationale for the launch of its direct digital investment offering, M&G pointed to the rapid rise in direct investing in recent years, with demand for digital investment services now accounting for 19% of all UK direct customers, it said.
Moneyfarm and M&G will also explore a range of other opportunities to partner in other European wealth markets.
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