04 Sep 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, a member of 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. As a winner of 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”.
Commenting on the transaction, Richard Mein, Chief Executive of Parmenion Capital Partners LLP, said:“Aberdeen’s strategic interest in Parmenion derives from their recognition that the business of investment management is moving online. Parmenion is at the very cutting edge in developing online capabilities for advisers and their clients, and the integrated investment, operational and technology services we have created in recent years, makes us an attractive partner for Aberdeen and the backing of one of Europe's largest fund management businesses will enable us to continue to develop our investment and technology solutions for our clients.”
Martin Gilbert, Chief Executive of Aberdeen Asset Management PLC, said:“Parmenion is perfectly placed to respond to the evolving pension environment and the growing demand for investment services that are accessible online. Since being established in 2007 it has provided financial advisers with a valuable service and their clients with investment solutions to meet their individual goals. With Aberdeen’s support and investment I believe Parmenion can build on its success to meet the changing needs of financial advisers as an increasing number of people turn to them for pre and post-retirement planning. This acquisition ensures Aberdeen is at the forefront of the digital revolution within asset management and augments our strategic aim to grow our Investment Solutions business.”
The acquisition is subject to regulatory approval from the UK Financial Conduct Authority.