The acquisition of Scottish Widows Investment Partnership will see Aberdeen Asset Management join forces with Lloyds Wealth to offer investment advice and create investment products sold through Lloyds’ branches.
Aberdeen confirmed a £550m deal to acquire Swip earlier this week, including the purchase of its Investment Solutions business which currently manages discretionary investments for Lloyds Wealth.
The deal will see Aberdeen form an “exclusive relationship” with Lloyds Wealth to provide investment advisory services, according to a statement from Aberdeen on the London Stock Exchange.
Aberdeen Asset Management chief executive Martin Gilbert says the new Investment Solutions business will include multi-asset, asset allocation and fiduciary management.
Gilbert describes the inclusion of the Swip Investment Solutions business as integral to the acquisition. He says: “We wouldn’t have done the deal if we couldn’t get that business.”
Lloyds is also looking to “become a bigger player in the wealth market”, according to Gilbert.
Lloyds will receive an additional five year earn-out payment of up to £100m depending on the performance of the Investment Solutions business as part of the acquisition.
Gilbert says Aberdeen also plans to create investment products to be rolled out across Lloyds branches.
He adds: “We will work with Lloyds to develop the right offerings for the branches.”
But he says it will not be a tied relationship between Lloyds and Aberdeen as other products will be offered through Lloyds branches as well.
Bestinvest managing director Jason Hollands says: “All of this is another feather in the cap for Aberdeen’s Martin Gilbert.
“While people have talked for years about consolidation in the asset management industry, he has clearly established himself as unrivalled king dealmaker.”