abrdn completes acquisition of interactive investor

ii, which will operate as a standalone business and independent brand within abrdn, welcomes the start of an exciting new chapter.

• abrdn and ii have a shared vision for the direction of the personal wealth market and a shared commitment to value, innovation, and campaigning work on behalf of private investors
• ii will operate as a standalone business and independent brand within abrdn
• Completion of the transaction is a material step in building a leadership position in the personal wealth market

interactive investor (“ii”) today begins the next phase of its journey, as abrdn, one of Europe’s largest active investment and wealth management firms with a near 200-year history, completes its acquisition.  

The completion will enable ii to drive its next stage of growth, building on its position as the UK’s second-largest investment platform for private investors, with assets under administration of approximately £59 billion and more than 400,000 customers.

interactive investorwill gain access to abrdn’s advice, research and wealth management capabilities to build on its already leading position in the UK’s savings and wealth market. Access to high-quality advice is becoming increasingly important as people seek to navigate the financial landscape. interactive investor sees real scope to help customers who want support, utilising abrdn’s expertise to help them meet their goals around capital preservation and wealth creation.

There are no changes for any ii customers. ii will operate as a standalone business and independent brand and continue to operate on its existing strong technology platform. The business will remain a consumer-driven, digital, open architecture investment platform and continue to offer its transparent and fair flat fees for customers.

The platform’s rated products will continue to be independently collated and maintained by Morningstar’s Manager Selection Services Group, working to ii’s methodology and overseen by ii’s Head of Fund Research. All fund managers, including abrdn, will have to earn their place among ii’s rated investments.

Under abrdn’s ownership, ii will continue its campaigning spirit by advocating for important issues such as financial education and enhanced retail access to IPOs. ii will remain firmly whole of market, instrument agnostic and have zero commercial interest in its customer choice of instrument. 

Richard Wilson will continue to lead ii through the next phase of growth, under abrdn’s ownership. The business will retain its own executive committee management team, with a new board.

abrdn and ii have a shared vision for the growth and development of the retail investment market and a commitment to champion the consumer. 

Richard Wilson, CEO of interactive investor, says: “In the past five years, we have built a strong digital consumer business. We’ve successfully consolidated the UK platform market while creating better customer outcomes, and in doing so have grown our assets under administration from less than £5 billion to circa £59 billion. Despite volatile market conditions in 2021, we have continued to grow revenue and customer numbers.

“With increased scale has come innovation, a powerful campaigning voice, and even better value, stamping out exit fees along the way.

“Today we join a company with a deep financial services history, and with a shared vision for the future. The opportunities that come with joining the abrdn family are significant. We will be working with abrdn’s talented team to harness their advice, wealth management and research capabilities for the benefit of our customers.

“Our success has been based on an open inclusive team culture that puts customers first, focuses on operational strength, and provides the best technology and campaigns for our customers interests. This won’t change; we’ll continue to offer our fair subscription pricing, whole of market choice and will continue to improve our services and content to ensure we remain the retail investment platform of choice and help drive future growth.

“As we begin the next phase of our story, the ii leadership would firstly wish to thank all of our colleagues for their dedication and professionalism through what has been an extraordinary journey.

“We would like to thank JC Flowers for their support and quality of stewardship. Thanks also to our wider shareholders for their enduring support, and considerable patience. And thank you to the ii Board for their contribution in successfully navigating the business through its growth journey leading us to where we are today.”

Stephen Bird, CEO, abrdn, says: “The acquisition of interactive investor is a transformative deal for abrdn’s Personal vector, and marks an important step forward in delivering our strategy for client-led growth.

“ii’s high-tech direct investing service is the perfect complement to the high-touch wealth and financial planning capabilities we already offer.

“As a leading player in a fast-growing market, with a scalable technology platform and a distinctive subscription-based model, the acquisition of ii will also diversify and grow our revenues.

"We would like to welcome Richard and the team to abrdn and look forward to working together to build the best savings and wealth offer in the market for our customers.”