British Asset Manager Abrdn Pays $2 Billion to Acquire Interactive Investors

The new deal gives fund management giant Abrdn direct access to Interactive Investor’s 400,000 client base while offering in return “abrdn’s additional capabilities across research, advice and wealth management services”.

On Thursday, December 2, British investment platform Abrdn announced the acquisition of investment platform Interactive Investors in a staggering $2 billion deal. This deal will give the giant fund management firm better access to a small stock-picking market.

Interactive Investors Acquisition by Abrdn

Founded in 1995, Interactive Investors has more than 55 billion pounds in assets under administration. However, not it will seek shelter under Abrdn which currently oversees assets of more than £500 billion.

Interactive Investors’ CEO Richard Wilson will remain in charge of the operation. But now, he shall be reporting to Abdrn boss Stephen Bird. Speaking of this development, Abrdn CEO Stephen Bird said:

“We wanted to buy a business that was building into the areas of high secular growth…we want to get those platform effects. Abrdn’s scale, resources, and shared vision will enable interactive investor to grow confidently and expand its leadership position in the UK’s attractive savings and wealth market. I am delighted that Richard Wilson and his team will continue to lead interactive investor.”

Bird refers to this acquisition as a transformative step in Abrdn’s growth strategy. Interactive Investors is currently U.K’s number 1 subscription-based investing platform having a powerful reputation as a consumer champion. Interactive Investor serves more than 400,000 clients as of now.

Catering to the New Breed of Investors

Asset managers and banks are currently looking into ways catering to the new breed of investors. These investors are usually younger and tend to invest directly instead of seeking any financial advice.

Earlier this year in June 2021, banking giant JPMorgan recently bought the British digital platform Nutmeg. this comes as part of the bank’s plan to expand further into the UK retail banking and investment market.

Speaking of this deal, Interactive Investors’ CEO Richard Wilson said that the deal means that Interactive Investor will get access to “abrdn’s additional capabilities across research, advice and wealth management services”. He added:

“This is an exciting new chapter in our history and means that we can focus exclusively on serving those who matter most: our customers. We will have access to abrdn’s additional capabilities across research, advice and wealth management services, and we will benefit from being part of one of Europe’s largest investment and wealth management firms, with a vision and values closely aligned to our own.”

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.