Virgin Money said on Wednesday it will purchase Abrdn’s 50% stake in their joint venture Virgin Money Investments “following the successful launches of its new investment and pension services for customers.”

Virgin Money Investments had total assets under management of £3.7 billion and over 150,000 customer accounts at December 31, 2023.

Virgin Money said its ambition is to double assets under management for Virgin Money Investments within the next five years.

Under the terms of the deal agreed, which is subject to customary approvals, Virgin Money will acquire the 50% of Virgin Money Unit Trust Managers Limited currently owned by Abrdn for a cash payment of £20 million.

The joint venture between Virgin Money and Abrdn was established in 2019, combining their specialisms to develop a new proposition for retail investors.

That service, comprising both a new digital platform and a range of investment products, launched to customers in April 2023.

A new pension was launched on the platform in November 2023, and all existing investment and pension accounts held on the old platform were successfully migrated to the new platform in January 2024.

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.”