Moneyfarm, a UK wealth manager that operates solely online, has entered the German DFM market through the acquisition of vaamo, which operates both direct to consumer and B2B business lines, including partnerships with digital bank N26 and 1822direkt.
The deal makes Germany the third market after the UK and Italy for the UK firm. Moneyfarm said that the estimated 9% household income savings rate in Germany was a key factor in its decision, as it looks to expand across Europe.
The vaamo brand name will be retained, and both companies will continue to service their individual customer bases. vaamo launched in 2014 as an independent digital wealth manager, and offers fully managed discretionary portfolios.
Giovanni Daprà, CEO and co-founder of Moneyfarm, said: “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.”
The deal will see Thomas Bloch and fellow co-founder and co-CEO Oliver Vins join Moneyfarm’s executive committee. Block will head the German business and Moneyfarm’s B2B activities across Europe. Vins will become head of Products at Moneyfarm.
The transaction is subject to regulatory approval by German supervisory authority BaFin.