Virgin Money is to buy Abrdn’s 50% stake in their joint venture called Virgin Money Investments.

Following the deal Abrdn will continue to provide investment advice for Virgin Money Investments, allowing both firms to utilise their strengths, according to Virgin Money.

The joint venture between Virgin Money and Abrdn was launched in 2019. It includes a digital platform and a range of investment products launched to Virgin customers in April 2023.

A new pension was launched on the platform in November 2023.

Virgin Money said that by taking full ownership of Virgin Money Investments it will be better able to pursue “profitable growth.”

The proposal is for all existing employees in Virgin Money Investments to move into Virgin Money, with no anticipated job losses.

Virgin Money is based in Glasgow, with major offices in Newcastle and London and 7,000 staff. It was formed by rebranding Clydesdale Bank and Yorkshire Bank as Virgin Money.

Virgin Money Investments had total assets under management of about £3.7bn and more than 150,000 customer accounts at 31 December 2023. Virgin Money’s target is to double assets under management for Virgin Money Investments within the next five years.

Under the terms of the deal, subject to regulatory approval, Virgin Money will acquire the 50% of Virgin Money Unit Trust Managers Limited currently owned by Abrdn for a cash payment of £20 million, funded from Virgin Money’s capital resources.

Allegra Patrizi, managing director business and commercial at Virgin Money, 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.”