FinTech firm InvestCloud has recapitalised at $1bn and has announced the integration of Finantix and Tegra118 into the business.
Motive Partners led the raise with Clearlake Capital Group and other InvestCloud client shareholders also participating.
“The recapitalisation achieves our first objective,” said John Wise, co-founder and CEO of InvestCloud. “At a valuation of $1bn, we can reward early investors in the business, while injecting new capital to fuel the next stage of our growth, further supporting our clients’ needs.
“Crucial to our ultimate objective – which is to build the world’s largest financial supermarket – is the partnership with [Rob Heyvaert, founder and managing partner of Motive,] and the Motive team, Clearlake and the Tegra118 and Finantix businesses.”
Heyvaert also serves as chairman of InvestCloud. “Huge forces are impacting the wealth sector,” he said. “Whether it’s demographics, democratisation or disintermediation, the sector will change massively in years ahead.
“We believe the use of InvestCloud’s cloud technology and platform with our existing assets (Tegra118 and Finantix) will determine the winners. This investment, and the commitment of two of our existing businesses and their exceptional talent, creates a global wealth platform provider that has proven technology with the ability to scale and serve the needs of our global clients and their customers through existing, new and hyper-personalised solutions.”
Finantix acquired fellow software developer InCube for an undisclosed amount in March 2020.
Recapitalisation means that a company has restructured its debt and equity mixture. This is often done in order to stabilise a business’ capital structure.
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