Global wealth management platform FNZ has closed a colossal $1.4bn investment, which brings its valuation to $20bn.
The investment was supplied by Canada Pension Plan Investment Board (CPP) and Motive Partners. Of the total fundraise, CPP has invested $1.1bn.
This investment represents the biggest primary equity raise within the wealth management sector.
With the support of the capital, FNZ hopes to accelerate its growth through R&D, as well as bolster its presence in certain markets, particularly North America.
FNZ, which was founded in 2003 in New Zealand, partners with firms to make wealth management and financial advice available to everyone. It combines technology, infrastructure and investment operations into a single platform that empowers clients to create hyper-personalised and innovative products and services.
Currently, FNZ serves over 650 financial institutions, helping more than 20 million people with their wealth management. Over the past five years, the company has increased its AUM seven-fold, rising from $212bn to $1.5trn.
FNZ founder and group CEO Adrian Durham said, “Today’s announcement represents a resounding endorsement of FNZ’s track record and future strategy. The company has successfully demonstrated exponential growth in the scale and depth of customer relationships and geographic expansion with platform revenues more than quadrupling in the past three years to over US$1billion per annum, whilst also growing profitably and sustainably.
“Our growth trajectory shows no signs of slowing down, and we are delighted to welcome CPP Investments and Motive Partners to FNZ and look forward to working with them as we further invest in and enhance our core platform, delivering substantial incremental benefits to our customers and their clients.”
Lazard & Co. Limited acted as exclusive financial adviser for the deal and Allen & Overy served as lead legal adviser to FNZ.
Late last year, FNZ acquired client onboarding and servicing platform Appway for an undisclosed amount. Appway helps the financial services industry improve its digitalisation and build customer-focused solutions.
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