AJ Bell sells bespoke SIPP and SSAS arm to Investacc
AJ Bell has sold off its Platinum Self-Invested Personal Pension (SIPP) and Small Self-Administered Scheme (SSAS) arm to specialist pension provider Investacc for £18.5m.
The bespoke service, designed for co-directors and partners in a business, currently has only 3,600 customers but £3.2bn of assets under administration.
Offering a wider range of investment choices than the traditional AJ Bell SIPP, it even allows investors to purchase UK commercial land and property.
Investacc was taken over by City veteran Mark Hodges and his private equity group Marwyn in 2024 for £41.5m, and will take control of the SIPP and SASS business in the second half of this year.
“The sale simplifies our business model, enabling the management team to focus on AJ Bell’s core platform business, in line with our growth strategy across both the advised and direct-to-consumer market segments,” said the investment platform’s chief, Michael Summersgill.
“AJ Bell Platinum customers will continue to receive great service as part of Investacc, an award-winning provider of bespoke SIPP and SSAS services, with a track record of delivering excellent customer service.”
The deal will see AJ Bell receive £17.5m in cash and £1m in Investacc shares, along with £6.5m of deferred cash that is subject to certain conditions.
Since AJ Bell Platinum contributed only £10m of non-platform revenue to the firm in its full-year results for 2024, the sale has not impacted the firm’s revenue expectations for 2025, it said.
In January, the platform business revealed that its assets under administration jumped to £89.5bn by the end of 2024, with customers surging 20 per cent throughout the year.
With close to 561,000 customers, growth came primarily from its direct-to-consumer platform, with advised customers (such as those using AJ Bell Platinum) joining at a much slower rate.
“We are excited to announce the acquisition of the Platinum SIPP and SSAS business from AJ Bell,” added Investacc chief Will Self. “Its exceptional service proposition and high-quality products make it a perfect strategic fit for Investacc.”