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Standard Life in Tenet Group shareholder deal

Standard Life’s first foray into IFA distribution sees it become the fourth provider sharehol-der in Tenet Group in a deal revealed exclusively by Money Marketing last week.

Standard joins Aegon, Norwich Union and Friends Provident as shareholders in the UK’s third-biggest IFA distribution group, all holding around 20 per cent.

NU and Friends had been stakeholders of 9.9 per cent in Tenet since 2002, while Aegon joined the list in August 2004, also taking 9.9 per cent. The three existing providers have exercised options to increase stakes following the FSA’s abolition of the better than best rule on June 1.

Standard Life was the first of three providers under consideration to come up with an acceptable offer, according to Tenet.

Venture capital vehicle Aberdeen Murray Johnstone Private Equity took a 60 per cent stake in Tenet following a management buy-out in 2000. It has now fully exited the company, with Tenet’s remaining shares held by management, staff and network members.

This is Standard Life’s first foray into distribution shareholding although it is expec-ted to be looking at other partners in the future.

Standard Life managing director (sales) Nathan Parn-aby says: “Tenet is a good investment. We will not have any undue influence in what they do but this should streng-then our position in terms of adding value.”

Tenet Group chief executive Simon Hudson says: “It was always our strategic plan to have four providers as investment partners. Aberdeen had sat on the board and it was a useful relationship but it was always providers we wanted. It is nice to be supported but they will not influence us or our advisers. There are no plans to introduce another – we will stick to four.”

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