State Street Global Advisors has taken a minority stake in retirement fintech firm PensionBee, confirmed a spokesman for the online manager.
He said the size of the stake and financial terms were not disclosed but that SSGA is now the largest external shareholder of PensionBee. The spokesman said the firm issued new shares for the stake.
PensionBee helps participants to find and consolidate their retirement plans into one, new online plan. Assets are managed by external money managers, including SSGA. The firm was launched in mid-2016 and has about £100 million ($133.8 million) in fee-earning assets, almost 8,000 active accounts and an additional £125 million of assets-in-transfer.
The financing will help PensionBee in expanding its consolidation services to banks and life insurance companies. SSGA, which has $2.67 trillion in assets under management, will take an "observer seat" on the firm's board.
The PensionBee spokesman added that SSGA's involvement is part of a larger funding round with other private investors, with an aim of accelerating growth in the U.K. and overseas. He said the firm will also be able to use SSGA's network to open offices in other countries, as well as working with them on developing offerings.
Nigel Aston, global head of defined contribution proposition and strategy for SSGA, said in a news release: "We have really enjoyed working closely with PensionBee over the last few years. We have been incredibly impressed and excited by how they use smart technology, innovative communication techniques and new media to attract and engage their audience."
A spokeswoman for SSGA said the firm is not disclosing terms of the deal.