Macquarie buys into Virgin Money
An ever-acquisitive Macquarie Bank has taken a piece of Virgin Money Australia, the Richard Branson-backed operation responsible for Virgin Super and the Virgin credit card.
Macquarie Bank, who’s funds management arm has been managing the money in Virgin Super since it was launched on July 1, has taken a 10 per cent stake in Virgin Money and will also provide funding to help it distribute new products.
Macquarie Bank deputy managing director Richard Sheppard said in a statement released this morning that the purchase fit into its strategy of teaming up with successful third party financial organisations.
Macquarie is the second large institution to involve itself with Virgin after Westpac signed a deal with the fledgling Australian operation in 2003 to distribute its credit cards.
Virgin Super, with its passive management style, was launched with much fanfare in Australia by global chief Richard Branson with claims it would offer investors value for money by offering low management fees of 1 per cent.
At the company’s launch, Branson also took a swipe at financial planners, brandishing them as self-interested and greedy.
At the end of August this year, Virgin Money head of marketing Nicole Hayde confirmed the company had opened almost 10,000 super accounts and received up to 3,000 enquiries a day, primarily through its website.
As a result of the buy-in, Macquarie will be given representation on the Virgin Money board.
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