Connect with us

Hi, what are you looking for?

Editor’s Pick

Abrdn to buy online platform Interactive Investor for GBP1.5bn

Abrdn has struck a GBP1.5bn deal to buy the online investment platform Interactive Investor, as the fund manager pushes into the increasingly popular realm of web-based trading.

Abrdn, which was known as Standard Life Aberdeen until a vowel-averse name change earlier this year, said it was acquiring a fast-growing business that added 46,000 customers last year, excluding acquisitions, taking the total above 400,000.

The business was purchased from the majority shareholder, JC Flowers, a US private equity firm, which controlled Interactive Investor via a holding company, Antler Holdco, registered in Guernsey.

The move heralds a significant expansion by Abrdn into direct investment. Firms such as Interactive Investor and its rival Hargreaves Lansdown allow individual “retail” investors the opportunity to exercise control, rather than handing over responsibility to a fund manager.

They have become increasingly popular thanks in part to the development of apps and web-based platforms that make trading easier, fuelling increased interest in dealing in financial instruments.

While apps such as Robinhood and eToro have targeted small-time “day traders”, often seeking a quick profit on sometimes controversial assets such as cryptocurrency, Interactive Investor has pitched itself at a different clientele.

Day trading platforms typically charge no subscription fee, taking a cut of trades and charging withdrawal fees instead.

Interactive Investor’s entry-level product requires a subscription of GBP9.99 per month, with customers able to set up automatic investment plans for free but charged if they make more than one trade per month.

Its client base skews older and wealthier, with customers more likely to be prepared to invest for longer-term returns.

The average customer is a 57-year-old with GBP137,454 deposited with the company, significantly more than both day traders and the GBP82,000 average at Hargreaves Lansdown and AJ Bell.

Richard Wilson, the chief executive of Interactive Investor, will continue to lead the business, whose GBP55bn of assets under administration will increase Abrdn’s direct investment business fivefold, to GBP69bn.

Wilson is expected to report directly to the Abrdn chief executive, Stephen Bird, who has made expansion into retail investing a priority for the Edinburgh-based firm, better known for traditional asset management on behalf of clients.

Bird said the deal was a “unique opportunity and a transformative step in delivering our growth strategy”.

Interactive Investor was founded in 1994 by the entrepreneur Sherry Coutu, who ran the business until it floated on the London Stock Exchange in 2000.

She left after it was bought the following year by Australia’s AMP, which briefly rebranded the business, folding it into its own Ample brand. The chief executive, Tomas Carruthers, led a buyout in 2003, leading to majority ownership by the US private equity firm JC Flowers.

Read more:
Abrdn to buy online platform Interactive Investor for GBP1.5bn

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Editor’s Pick

UK taxpayers could have to pay as much as £1bn in compensation to former Post Office workers wrongly convicted of theft due to the...

Editor’s Pick

More than eight in ten mid-sized businesses in the UK experienced fraud in 2021, up from 60 per cent the year before, research has...

Editor’s Pick

Ambition to grow has exceeded pre-pandemic levels among small businesses but they are being held back by rising costs, skills shortages and a lack...

Editor’s Pick

Poor parental leave policies have led one in five younger workers to quit their job, a survey has found. A poll of more than...

Editor’s Pick

Investors seeking to benefit from the UK holiday market are snapping up British country house hotels with £600 million worth of independent UK hotels...

Editor’s Pick

The deputy prime minister has defended the planned rise in national insurance contributions in April, despite criticism from senior backbenchers. Dominic Raab, the deputy...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

Editor’s Pick

London has beaten off competition from Paris and Berlin to become the highest ranked European city for property investment, according to a survey...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.