M and A
Deals Of The Day: The Latest In Wealth Management M&A - Moneyfarm
The latest moves in wealth management across Europe, Middle East and Africa.
Moneyfarm
Moneyfarm, the
online investment firm, has bought German robo-advisory business
Vaamo as part of an expansion into the European market.
The financial terms of the deal have not been disclosed. The deal
means that Moneyfarm adds Germany to its existing Italian and UK
businesses - a sign of M&A deals affecting the digital parts
of the wealth management landscape. Vaamo was launched in
2014.
Reports said that Vaamo founders Dr Thomas Bloch and Dr Oliver
Vins have joined Moneyfarm’s executive committee. Dr Bloch will
be responsible for business in Germany and Moneyfarm’s
Europe-wide B2B business. Dr Vins will be responsible for product
management and development at Moneyfarm groups in the future.
“With Germany being Europe’s second largest robo-advisory market
by AUM; this acquisition is Moneyfarm’s attempt to think outside
the box on how to really make their mark in new territory,”
Sergel Woldemichael, wealth management analyst at GlobalData,
said.
“The move is a clever way for MoneyFarm to enter a new market
without the need to set up its own infrastructure from scratch.
With Germany being a competitive and saturated market, after
setting up an own shop, it would require a lot of effort to catch
up with the leaders. The start-ups recognise they are better
together than separate in such a cut-throat climate,”
Woldemichael continued. A GlobalData survey of wealth managers
showed that slightly more than 45 per cent of larger firms in
Europe were looking to partner/acquire fintech.
With about 30,000 clients, Moneyfarm has received £60 million ($76.8 million) in backing from investment giant, Allianz Global Investors, UK private equity firm, Cabot Square Capital, and Venture Capital Fund, United Ventures. It first launched in Italy in April 2012. In May this year, Allianz became its lead investor.