Caisse de Depot et Placement du Quebec (CDPQ) and Generation Investment Management have agreed to acquire a majority stake in FNZ, a Platform-as-a-Service (PaaS) provider to the European wealth management industry, in what is claimed to be one of the largest global FinTech transactions in 2018.
The purchase of a two-thirds interest held by the private equity companies General Atlantic and HIG Capital values FNZ at about £1.65bn.
Based in Edinburgh, FNZ is a global FinTech firm that partners with banks, insurers and asset managers to support consumers better achieve their financial goals.
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’s technology, transaction and custody services will allow clients to provide advanced wealth management solutions to financial advisers and end-investors.
It is also responsible for more than £330bn in assets under administration (AuA) held by about five million customers of major financial institutions such as Standard Aberdeen, Santander, Lloyds Bank, Vanguard, Generali, Barclays, Quilter, UOB, Aviva, Zurich, UBS, BNZ, Findex and FNZC.
FNZ has partnered with more than 60 financial institutions across the UK, Europe, Australia, New Zealand and South-East Asia.
H.I.G. has helped the company to expand its services to continental Europe and Asia across all segments ranging from mass-market workplace pensions to mass-affluent and high-net-worth clients.
In 2003, New Zealand’s investment bank and wealth manager FNZC, along with Adrian Durham, established FNZ.
The firm partnered in a management buy-out with H.I.G. Capital in 2009 to expand its operations, while General Atlantic offered additional investment in 2012.
At present, FNZ has more than 1,400 employees in the UK, Czech Republic, Shanghai, Singapore, Australia and New Zealand.
JP Morgan has served as financial adviser to H.I.G. Capital and General Atlantic in the latest deal.
FNZ CEO Adrian Durham said: “Under H.I.G.’s ownership, we have successfully partnered to deliver exceptional growth and value creation for our investors, whilst driving down long-term costs for financial institutions and consumers alike.”