LONDON (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 (DE:ALVG) Asset Management, Poste Italiane and UniCredit.
Barclays (LON:BARC) 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)