Virgin Money has announced that it will purchase the 50% stake held by abrdn in the respective firms’ joint venture, Virgin Money Investments, for £20m.

The bank said this follows on from the successful launches of its new investment and pension services for customers.

Virgin Money will acquire the 50% stake of Virgin Money Unit Trust Manager Limited, which is currently owned by abrdn, for a cash payment of £20m. This will be funded entirely from the lender’s existing capital resources.

The joint venture between Virgin Money and abdrn was established in 2019, bringing their specialisms together to develop a proposition for retail investors. The service, comprising a new digital platform and a range of investment products, was launched to customers in April 2023.

A new pension was launched on the platform in November last year and all existing investment and pension accounts held on the old platform were migrated to the new platform last month.

Virgin Money will now take full ownership of Virgin Money Investments, with the purchase enabling both Virgin Money and abrdn to focus on their respective strengths.

As a result of the deal, all existing colleagues at Virgin Money Investments will move into Virgin Money, with no job losses anticipated.

The transaction is expected to complete in April.

Managing director for business and commercial at Virgin Money, Allegra Patrizi, said: "Our joint venture with abrdn has successfully delivered a new investment service offering simple and straightforward investment options for customers.

"Taking full control of Virgin Money Investments will mean we can bring the investments and pensions business together with our deposits, mortgages, credit cards and daily banking, enabling us to help more customers feel confident to invest for the future and driving significant growth in assets under management."

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