Moneyfarm acquires Profile Pensions and hits £3bn in assets

Moneyfarm has acquired digital pension adviser and pensions consolidator Profile Pensions. 

The purchase marks a “significant expansion” of the online investment adviser into the UK pensions market, which currently sits at £680bn.

According to Moneyfarm, the combination of the two companies will see it create an even stronger fintech business for its customers, bringing its assets under management to more than £3.3bn.

“Through the acquisition of Profile Pensions, Moneyfarm will create an even greater opportunity for our clients to maximise the long-term value of their assets by allowing them to easily consolidate their pensions investments alongside their normal investment, ISA and SIPP accounts,” Moneyfarm co-founder and CEO Giovanni Daprà said.

“Profile Pensions gives flexibility to pensions investing as it allows you to track down your pensions, identify which investments are suitable for you, and manage them in a way that’s more aligned to your circumstances thanks to the unique digital whole of market advice capabilities.”

The acquisition, which is expected to close in the first half of next year, will add another 24,000 customers to Moneyfarm, bringing its total to 115,000.

The purchase tops off a busy 12 months for the digital wealth manager.

Daprà said the company has had an “incredible journey” in the UK, having acquired Wealthsimple’s UK book of business last year and secured £44.1m in funding led by M&G which acquired a minority stake in the business in January.

“This acquisition is another testament to our ambitions, helping us consolidate our market position even in a challenging business environment,” Daprà added.