(Add details, size of the transaction)
LONDON, Jan 26 (Reuters) - British money manager M&G
said on Wednesday it has taken a minority stake in digital
wealth manager Moneyfarm as part of a partnership to provide
investment services to consumers in Britain.
M&G will use Moneyfarm's technology and digital capabilities
to offer model portfolios through mobile phones and online.
Moneyfarm said separately that the M&G stake came as part of
a 44.1 million pounds ($59.57 million) capital raise which also
included Poste Italiane, an existing investor in the digital
wealth manager.
A source with knowledge of the transaction told Reuters that
the funding round valued Moneyfarm at between 300 and 350
million pounds ($472 million).
Since it launched in 2012, Moneyfarm has raised 139 million
pounds.
Moneyfarm said it will use the funds to support future
development, expanding its product proposition and building out
offer through strategic partnerships.
M&G added that the agreement includes to explore with
Moneyfarm opportunities to partner in other European markets.
The British asset manager has more than 370 billion pounds
under management while Moneyfarm manages 2.2 billion pounds of
assets, according to its website.
Moneyfarm has partnerships in other countries with Allianz
Asset Management, Poste Italiane and UniCredit.
Barclays Bank acted as placement agents for the funding
round while Perella Weinberg Partners, STJ Advisors and Vitale
were financial advisors to Moneyfarm.
($1 = 0.7402 pounds)
(Reporting by Pamela Barbaglia and Andres Gonzalez, editing by
John O'Donnell)
Barclays (BARC)