UK wealth manager M&G has acquired an undisclosed minority stake in digital investment specialist Moneyfarm as part of a strategic tie-up to offer investment services to its UK customers.

M&G’s investment was part of Moneyfarm’s £44.1m Series D funding round.

The partnership will see M&G’s wealth management unit utilise Moneyfarm’s digital capabilities, technology, and investment guidance journeys to form its own branded proposition.

The new direct digital service will include a range of multi-asset model portfolios, which are backed by a selection of actively-managed and passive funds.

As part of the tie-up, the two companies also plan to consider new partnership opportunities in other wealth markets in Europe.

M&G Wealth managing director David Montgomery said: “With the launch of a direct, mobile-based investment platform, complementing our growing independent, proprietary and hybrid adviser businesses, our customers will be able to access the channel, advice and investment proposition that most suits their financial situation and needs.

“We have been highly impressed by Moneyfarm’s innovative approach and look forward to working together to build a simple and effective proposition to serve our next generation of retail customers.”

Moneyfarm’s Series D fundraising

Separately, Moneyfarm said that its new funding round will enable it to increase its investment in people and its platform.

The company plans to utilise the fund in key areas, including the expansion of its product proposition and develop its new B2B2C proposition through further strategic partnerships.

Moneyfarm CEO Giovanni Daprà commented: “Moneyfarm was founded in 2012 on the core principle that personal investing should be simple and accessible.

“Our distinctive partnerships with established players in the industry such as Allianz, Poste Italiane and UniCredit demonstrate the real value that can be created by combining the agility and innovation of a direct, digital fintech business with the scale and experience of an established provider.”

In 2019, Moneyfarm raised £36m in Series C funding from Allianz Asset Management and Italian postal service, Poste Italiane.