Fintel plc (Fintel) and Tatton Asset Management plc (Tatton) have joined forces to increase their leverage among advice firms.
The new distribution partnership sees Tatton license Fintel’s adviser technology and acquire its Verbatim fund ranges.
This adds around £650m to Tatton Investment Management’s assets under management (AUM) and extends its IFA relationships by over 800 firms.
In return Tatton has chosen to license the financial planning solution Defaqto Engage and use Fintel’s new distribution as a service (DaaS) solution.
DaaS provides fund managers with data on consumer preferences and helps them to build products.
Fintel signed multi-year partnership with Schroders, Just, Guardian, BMO and 91 Asset Management to use DaaS at the beginning of September.
The latest deal allows Fintel to leverage its acquisition of Defaqto by developing new distribution propositions at a business level.
And Tatton gets to expand its range of investment solutions to thousands of new advisers and clients.
This alliance will see an Enterprise version of Fintel’s adviser platform, Defaqto Engage, custom configured for Tatton’s adviser firms.
The Defaqto Engage software is financial planning software built into one system and capable of individual configuration.
Commenting on the deal, Tatton chief investment officer Lothar Mentel said: “The Verbatim funds have a proven track record over 10 years and have been widely adopted by over 800 financial advisers. The new funds will help Tatton further extend its reach into the Multi-Asset landscape offering flexibility and choice alongside our existing funds and model portfolio solutions.”
Regarding its side of the deal, Fintel joint chief executive Matt Timmins added: “We are delighted to announce a strategic partnership with Tatton Asset Management. This long-term partnership further strengthens our fintech and distribution propositions and sees us working collaboratively for the benefit of the intermediary market.
“The deal is the coming together of two businesses completely focused on delivering effective solutions to advisers, helping them access the best technology and fund solutions in the market.
“We operate as a market connector, simplifying and improving retail financial services through technology, people and insights, and this partnership will see us drive collaborative growth and inspire better outcomes for all.’’
Tatton chief executive Paul Hogarth explained the deal is pivotal to the firm’s growth strategy.
“We have set out a roadmap for growth over the next three years, growing our AUM organically and by acquisition extending our reach into the IFA community, the lifeblood of our industry, through strategic partnerships.
“This transaction is evidence of that strategy in action, enhancing our proposition to IFAs and their clients further, with the funds complementing and extending our current fund range.
“We are excited to be working more closely with Fintel, a business we have known and respected for a very long time. I have no doubt that this is a fantastic opportunity for both businesses to continue to deliver market leading solutions to the intermediary sector.”
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