UK-based digital wealth manager Moneyfarm has acquired German compatriot vaamo, marking the company's entrance into a third European market.
Vaamo, which launched in 2014 as Germany’s first independent digital wealth manager, offers regulated fully-managed discretionary portfolios, much like Moneyfarm. Partnerships include Berlin-based digital bank N26, and 1822direkt, the online business of one of Germany’s largest savings banks.
Moneyfarm uses a blend of algorithmic-based investment advice backed by a team of consultants to reassure its customer base of 27,000 active retail investors and discuss portfolio performance. The firm is currently active in both the UK and Italy.
In May, Moneyfarm tapped existing investor Allianz Asset Management and a combination of VC and private equity funding to raise £40 million in a Series B financing round and in October acquired personal financial management chatbot startup Ernest.
Giovanni Daprà CEO and co-founder of Moneyfarm, says of the latest acquisition: “Vaamo’s strong foothold in the German market and established B2B offering made them an attractive acquisition to further cement our position as a pan-European investment provider. Their shared preference for providing regulated investment advice, over an execution-only service, is in line with our investment ethos and was a key consideration in the process.”
Financial terms were not disclosed.
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