CDPQ has acquired a stake in FNZ, a platform-as-a-service provider for European wealth management firms, in a deal which values the company at £1.65bn.
Founded in 2003, Edinburgh-based FNZ partners with banks, insurers and asset managers and provides them with multi-channel wealth management services to help their customers improve their personal finances.
Its services support the entire wealth management value chain from digital user experience, client, account, and portfolio management, through to back-office trade execution, settlement and investment administration.
The company is currently responsible for more than £300bn assets under administration and is partnered with 60 financial institutions spanning the UK, Europe, Australia, New Zealand and South-East Asia. Some of its partners include Aberdeen, Barclays, Lloyds Bank, Generali, Santander, Aviva, and Zurich.
During the partnership with H.I.G., FNZ witnessed ‘exceptional growth and substantially grew its footprint’, the company said. Alongside this, it was able to broaden its offering in continental Europe and Asia.
This sale closes a nine-year holding period for H.I.G. which initially invested into FNZ alongside the company management in 2009, making an undisclosed investment.
The firm then entered a partnership with fellow growth equity firm General Atlantic, which picked up a minority stake within FNZ.
H.I.G. Capital managing director Carl Harring said, “H.I.G. is proud to have been a long-term partner of FNZ. During our nine years of ownership, the Company experienced exceptional growth in assets under administration from £5bn to over £330bn, and became the European Platform-as-a-Service market leader in the wealth management industry.
“FNZ has delivered an outstanding return for H.I.G. and its investors; we look forward to following the Company as it continues on its rapid global growth path.”
JP Morgan served as the financial adviser to H.I.G. Capital for the transaction.
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