Digital wrap and wealth management platform Ascentric, which has been part of mutual life insurance and pensions giant Royal London for about 13 years, will have a new owner in the form of M&G Plc.
The sale, financial details of which were not disclosed, comes following a comprehensive strategic review led by Royal London chief executive Barry O’Dwyer. Designed for UK independent financial advisers, Ascentric has assets under administration of £14 billion.
“As part of our strategic review of the business, we explored a number of options for Ascentric,” noted O’Dwyer, whose camp acquired a majority holding of Ascentric in 2007 before it became a wholly owned Royal London subsidiary in 2014. “The business has been performing well following its re-platforming [in 2019] and we sought an outcome that would take it to its next phase of growth.
“We believe that a sale to M&G delivers this for Ascentric, and I am pleased to have found a buyer who has a strong commitment to Ascentric’s client and customer base and who is looking to further grow the business. I would like to thank the Ascentric team for their contribution to building a valuable business over the past years.”
Ascentric includes Wrap IFA Services Limited and its subsidiaries, and has around 1,500 adviser relationships and more than 90,000 underlying customers. The company’s CEO, Rob Regan, described the deal as a “compelling transaction” for the business.
Regan noted: “It is very clear that M&G is aligned with our values and ethos and represents a good home for our advisers, strategic partners, and staff. M&G is well-placed to take us on the next stage of our journey leveraging its scale to grow the business.
“We look forward to working with M&G to support our clients and customers going forward as well as through the transition from Royal London’s ownership.”
For M&G boss John Foley, the swoop will strengthen their position in the UK savings and investment market as it complements M&G’s existing offering to advisers and customers with a well-established digital wealth management platform.
Subject to regulatory approval, the purchase will provide M&G the capability to offer third-party discretionary fund management services, as well as individual savings account (ISA), self-invested personal pension (SIPP), and general investment account (GIA) wrappers on a single system.
