Aberdeen Standard Investments has agreed a joint venture with Virgin Money to provide asset management services to its customers.
Under the terms of the deal, Aberdeen Standard will acquire 50 per cent of Virgin Unit Trust Managers for an upfront cash payment of £40m.
The transaction is expected to be completed by the end of 2018.
Virgin Money currently has 200,000 retail investment customers and £3.7bn in assets under management.
Aberdeen Standard Investments co-chief executive Martin Gilbert says: “We’re delighted to be partnering with Virgin Money to develop its retail investment business.”
Gilbert says: “Its customer focus mirrors that of Aberdeen Standard Investments and we look forward to working together and sharing a strong and profitable relationship over many years to come.”
The news comes after Aberdeen Standard announced it is launching a €1bn private equity fund with Italian investment manager 21Partners.
The joint venture, called 21 Aberdeen Standard Investments Limited and made up of six people, will manage a fund targeting “active non-controlling interests” and support growing companies in Europe.