JP Morgan Asset Management buys tax planning Fintech 55ip

Darren Sinden

Based in Boston and Mumbai 55ip had worked closely with JPM AM in the past, as one of two major investment management that its tax-efficient investment solutions support

JP Morgan Asset Management has agreed to buy 55ip, a Fintech company that specialises in providing financial advisors with tax efficient investment strategies.

After the deal has been concluded, 55ip will continue to operate as a separate entity under its own brand and will continue to serve its existing customers and clients.

Based in Boston and Mumbai 55ip had worked closely with JPM AM in the past, as one of two major investment management that its tax-efficient investment solutions support.

55ip looks to improve investment returns for US financial advisers, and their underlying clients, by selecting the most tax-efficient funds and other investment vehicles, employing strategies such as low-cost index replications using ETFs and active tax and risk management techniques.

55ip’s solutions can be white-labelled and branded as the financial advisor’s own, and the automated strategies can be personalised to suit their end clients requirements.

55ip is headed up by CEO Paul Gamble, with COO Sachin Shah, who has 21 years experience in investment management and Fintech, the founder and executive chairman of 55ip, Dr Vinay Nair, will remain with the company following its acquisition by JP Morgan.

His opposite number George Gatch, CEO of J.P. Morgan Asset Management said of the deal

“Advisors are increasingly seeking intelligent, automated tools to provide simplicity, scale and efficiency, and by acquiring 55ip we are accelerating our significant investments in advanced advisor technology”

adding that “This is an exciting development that signifies broad collaboration between fintech and asset managers, aimed toward improving capabilities and outcomes for advisors and their clients”

55ip has struck deals this year with Wisdom Tree, Robertson Stephens and Charles Schwab, so the ability to operate independently, but under the umbrella of their new parent will likely be very important to the fintech.

No financial terms for the deal were disclosed, but M&A between fintech companies and banks is becoming more commonplace, banks seem to prefer to let start-ups develop technology and solutions and then to do a deal with those firms if they perceive a competitive advantage.

Of 10 major deals announced in the European Fintech space, during November 2020, 5 involved an established banking or credit card/payment services provider, according to data gathered by IBS intelligence, and it seems highly likely that many more deals will follow.

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