Moneyfarm expands with acquisition of Profile Pensions

The deal brings 24,000 customers to Moneyfarm and increases its assets under management by £870m

Moneyfarm, an online wealth management firm, has agreed to acquire UK digital pension provider Profile Pensions. 

The deal brings it 24,000 customers and increases its assets under management by £870m. 

The deal will be financed by Moneyfarm’s current shareholders, including M&G, Poste Italiane and Fondazione di Sardegna. It is expected to close in the first half of next year.  

The acquisition marks a “significant expansion” into the UK pensions market for the London-headquartered online wealth management firm. 

It says the pension market is “burgeoning”, standing at £680b and has grown by 24% since 2016.  

Moneyfarm said the acquisition of Profile Pensions could help its current customers with more flexibility in investing and consolidating their pensions. 

Giovanni Daprà, co-founder and chief executive at Moneyfarm, 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. 

“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.” 

Jordan Mayo, chief executive of Profile Pensions, added: “The team at Profile Pensions has built a whole of market pensions advice, consolidation and drawdown platform that delivers outstanding customer outcomes and world class customer satisfaction.”  

This acquisition is the latest step in Moneyfarm’s growth. It acquired Wealthsimple’s UK clients last year and subsequently raised £44m in a series D funding round led by M&G.  

Moneyfarm is operating in a highly competitive space with well-supported providers, such as Nutmeg, which is owned by JPMorgan Chase, and Aviva-backed Wealthify. 

Image: Moneyfarm 

Josh Poyser Josh Poyser is an editor at FinTech Intel. He has written about fintech for several years and appeared at FinTech Connect 2023 on the 'Unlocking Success: The Art of Fintech PR' panel.