Aberdeen Standard Investments (ASI) and Virgin Money have agreed to partner to create an asset manager.
Under the terms of the agreement ASI will acquire 50% of Virgin Money's unit trust business for ‘in-excess’ of £40 million, and will run Virgin Money’s £3.7 billion of client assets.
Virgin Money will focus on retail distribution for the JV. Virgin Money currently has over 200,000 retail investment clients.
The deal is expected to close before the end of 2018.
Martin Gilbert (pictured), co-chief executive at ASI, said: ‘We’re delighted to be partnering with Virgin Money to develop their retail investment business.
'Their 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.’
Jayne-Anne Gadhia, chief executive at Virgin Money, said: 'Our new partnership with Aberdeen Standard Investments will bring together two outstanding innovative brands.
'We look forward to using our brand and customer reach, combined with ASI’s strength in asset management and its digital capability, to provide a market-leading customer proposition.
‘This mutually beneficial relationship will give our customers a broader fund choice and the tools and capability to invest for the future with confidence.
The JV will bring welcome inflows for ASI, which had recently lost a lucrative Scottish Widows mandate.
It also follow yesterday's annoucement of a similar partnership to create a private equity firm.