Fund manager Aberdeen Asset Management was beaten to acquiring a stake in online wealth management firm Nutmeg by its rival Schroders.
Earlier this month Schroders announced it was part of a group of backers who invested a combined £18.9 million in Nutmeg.
As part of the deal Schroders executive chairman Massimo Tosato will take a seat on Nutmeg’s board.
According to the Financial Times, Aberdeen was also looking into buying a stake in Nutmeg but was beaten to it by Schroders.
Martin Gilbert (pictured), chief executive of Aberdeen, told the paper: ‘It is a really smart deal for Schroders- so smart that we were thinking of doing the deal ourselves. We wanted to get involved but Schroders beat us to it.’
Gilbert added that the deal gives Schroders a cheap way of getting to grips with the online wealth market and also gives it a strategic advantage if they wanted to buy the firm outright.
‘The new generation of investors are not going to deal with stockbrokers- they will use the likes of Nutmeg, and so the deal makes real sense,’ he said.