Friday 4 September 2015
Aberdeen Asset Management PLC (“Aberdeen” or “the Group”) has entered into an agreement to acquire Parmenion Capital Partners LLP and its sister company, Self Directed Holdings Limited (together “Parmenion”), based in Bristol. The acquisition is part of Aberdeen’s strategy to capitalise on advancements in financial technology systems and to become a leader in using technology to provide investors with portfolios appropriate to their needs, whilst also growing its Investment Solutions business.
Parmenion, selected for The Fintech50 2015, provides risk graded portfolios to UK financial advisers that they can utilise through a unique, yet simple, digital platform. The Parmenion platform has the highest rating based on a recent survey of advisors*. It has £1.9 billion assets under management and delivers services to more than 900 adviser firms.
Parmenion will retain its own identity and remain located in Bristol, but will receive additional investment from Aberdeen to develop and expand its service. Parmenion will also be able to draw on Aberdeen’s investment solutions expertise, including the ability to allocate to the Company’s quantitative investment strategies. Its multi-manager portfolios will continue to invest in funds of third-party asset managers.
The transaction provides key benefits to Aberdeen:
Accelerates its ambitions to provide digital innovation and services across distribution channels;
Supports the strategic aim of growing its Investment Solutions business, and
Further bolsters the Group’s already extensive distribution reach in the UK.
Eddie Harding, Head of Fintech M&A at ICON Corporate Finance, who advised the management on the sale, said ”Parmenion’s Digital Discretionary Funds Management Platform is an excellent strategic acquisition for Aberdeen. As Wealth Management is increasingly performed online, major global fund houses need either to develop in house or buy in a digital platform. By listing on The FinTech50 2015, Parmenion has clearly demonstrated the significant innovation and scalability of its unique DFM offering, and is now ideally positioned to continue its significant growth record as part of a leading FTSE 100 investment management group”.
The acquisition is subject to regulatory approval from the UK Financial Conduct Authority.