The boss of the UK’s largest digital wealth manager Nutmeg has stepped down following the firm’s buyout by JPMorgan.
A pioneer in the ‘robo-advice’ market, Nutmeg was acquired by JPMorgan for a reported £700m last June, adding wealth management services to bolster the US giant’s nascent digital banking brand in the UK, Chase.
A Companies House update dated 30 June shows Nutmeg chief executive Neil Alexander’s directorship has been terminated.
Alexander’s LinkedIn profile was updated to”taking a break”, and lists him as “self-employed” as of June.
“Following the successful sale of Nutmeg to JPMorgan, I am now taking some time out,” his profile reads.
A Nutmeg spokesperson confirmed that Sanjiv Somani, as part of his role leading JPMorgan Chase’s international consumer business in the UK, will take on responsibility for Nutmeg, “bringing the businesses more closely together and pursuing opportunities in both the retail banking and retail investment outside the US”.
Sanoke Viswanathan, chief executive officer, international consumer business at JPMorgan, said: “Neil has been a tremendous partner over the past year and we wish him the very best of luck in the future.”
JPMorgan has been approached for comment.
Alexander’s departure comes as JPMorgan recently completed a rebrand of Nutmeg, but the wealth manager continues to struggle for profitability. It’s latest results show losses widened 28% to £19.3m in 2021.
Speaking with Financial News in February, Alexander said that the JPMorgan deal would help the business scale further, turning it to a profit, and that the underlying unit economics of its services continued to make sense.
The initial announcement of the deal did not include any information on a management structure going forward.
Alexander did not rule out that JPMorgan would eventually ditch the Nutmeg moniker as it folds Nutmeg’s investment portfolios into the savings products offered by Chase.
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