Aberdeen has agreed to sell Aberdeen Financial Planning to Ascot Lloyd for an undisclosed sum.

Aberdeen Financial Planning, formerly 1825, was set up as part of Standard Life plc in 2015 and subsequently built up through a series of acquisitions. The business was renamed in 2021 and then moved to sit within Interactive Investor in January 2024.

It has around 150 advisers based across the UK.

It is separate from Aberdeen’s adviser business which provides solutions and technology to UK advisers.

The private client services team from Aberdeen Financial Planning is not included in the sale, and will remain with Aberdeen.

Jason Windsor, CEO of the Aberdeen Group, said the sale is part of the asset manager’s plans to simplify its business.

He said: “Today marks another step forward in our efforts to simplify our business so that we can focus on our ambition to become the UK’s leading wealth and investments group. 

“We have three core businesses, Interactive Investor, adviser and investments, all with clear plans for growth, and these actions are part of our drive to improve performance and execute on our plan.”

Richard Wilson, CEO of Interactive Investor (part of Aberdeen), added that the team had concluded that the “face-to-face holistic financial advice model” was “not the best fit” with the rest of its business.

Aberdeen first confirmed that it was putting its Financial Planning business up for sale in its half year results, following months of speculation around potential buyers.

As part of the deal Ascot Lloyd will continue to partner with Aberdeen with use of its wrap platform and investment solutions.

Francis Jackson, CEO of Ascot Lloyd, said: “The acquisition of Aberdeen Financial Planning marks a major milestone on the Ascot Lloyd journey. The leadership team and advisers we encountered are highly experienced, skilled professionals who will integrate well into the culture at Ascot Lloyd.” 

Ascot Lloyd was set up in 2003 and has around £10bn in funds under influence and provides Financial Planning, wealth management and corporate benefit solutions to more than 20,000 clients. It has more than 500 staff in 17 UK locations.

European private equity firm Nordic Capital acquired Ascot Lloyd from US-based Oaktree Capital Management for an undisclosed sum in October 2022.

Before then Ascot Lloyd acquired a number of Financial Planners across the country, including Kemble Warwick, Corporate Benefits Consulting, Gregory Adam Financial Management, Fitzroy Wealth Management and Ring Associates in 2020.

In August 2021 it completed the acquisition of Aberdeen-based Central Investment Services, a few months after securing funds from Ares Management Corporation to increase its capital available for acquisitions to over £100m.

In October last year it acquired Scottish adviser Create and Prosper Financial Services, bringing £254m in assets under administration.