- CPP Investments and Motive Partners commit US$1.4 billion in new capital in one of the largest primary capital increases in wealth management sector
- The transaction values FNZ at more than 20 billion US dollars
- Combining Motive’s industry expertise with CPP Investments’ long-term capital lays the foundation for FNZ’s next phase of growth
- FNZ now administers over US$1.5 trillion on its platform for more than 20 million customers worldwide
- FNZ is accelerating its mission of unlocking wealth, enabling everyone to create wealth through personal investment, aligned with the things that matter most to them, on their own terms
TORONTO, NEW YORK and LONDON, February 11, 2022 /CNW/ – FNZ, the global wealth management platform, today announced that it has obtained US$1.4 billion in new equity financing from Canada Pension Plan Investment Board (“CPP Investments”) and Motive Partners (“Motive”), in one of the largest capital raises ever in the wealth management industry. Fundraising values FNZ at more than 20 billion US dollars as it continues its record of innovation and geographic expansion.
FNZ is partnering with the wider industry to make wealth management and financial advice accessible to more people. Today, FNZ works with over 650 financial institutions to enable more than 20 million people from all wealth segments, including savings and retirement, the rich and the high net worth, to build wealth through to long-term investments, aligned with the things that matter most to them, and on their own terms.
FNZ combines technology, infrastructure and investment operations in a single, state-of-the-art platform that enables its institutional clients to create hyper-personalized and innovative products and services that are perfectly aligned with the needs of their customers.
This investment reflects both CPP Investments and Motive’s confidence in FNZ’s business model and prospects for future growth, both geographically and through market consolidation. The capital increase will help FNZ accelerate its growth through increased R&D, as well as drive growth in markets that FNZ has recently entered, in particular North America. CPP Investments invests a total of US$1.1 billion.
Since its foundation in 2003 in New Zealand, FNZ has grown exponentially. Over the past five years, its assets under administration have increased more than sevenfold, from 212 billion US dollars to end US$1.5 trillion. The company is now a partner of over 650 major financial institutions and over 8,000 wealth management firms in 21 countries, including abrdn, Allianz, Aviva, Barclays, BNP Paribas Cardif, BNZ, Colonial First State, Generali, Jarden, Lloyds, Momentum, NAB, Quilter, Swedbank, UOB and Vanguard. This growth is expected to continue as FNZ accelerates its market penetration, targeting a larger share of the c.100 trillion US dollars global wealth market.
The company has always had strong investment appeal and CPP Investments and Motive Partners represent FNZ’s fifth and sixth outside shareholders. In 2018, the CDPQ and Generation Investment Management acquired a majority stake in the company, as part of a partnership built around long-term and sustainable investments. They were joined in 2021 by Temasek, strengthening FNZ’s reach in Asian markets. All investors remain long-term and committed shareholders, alongside more than 800 employee shareholders. No investor will sell secondary shares as part of the transaction.
Lazard & Co. Limited acted as exclusive financial advisor and Allen & Overy LLP acted as lead legal advisor to FNZ in connection with the capital increase.
Commenting on today’s transaction, Adrian Durhamfounder and CEO of FNZ Group, 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 expansion geographically, with platform revenue more than quadrupling over the past three years to more than 1 billion US dollars per year, all in growg cost-effectively 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 continue to invest and improve our core platform, providing substantial additional benefits to our customers and their customers.”
Hafez Lalanigeneral manager, head of EuropeDirect Private Equity at CPP Investments, said: “FNZ offers a unique end-to-end value proposition that enables the world’s leading wealth managers to deliver personalized, transparent and accessible solutions to enhance consumers’ long-term savings while reducing cost and complexity. FNZ has has been tremendously successful and we are delighted to support FNZ and its leadership in pursuing their vision of expanding FNZ’s global footprint, while delivering attractive risk-adjusted returns for CPP contributors and beneficiaries.
“In partnering with Motive, we believe we bring a unique combination of long-term capital and specialized expertise to the wealth management industry. We look forward to being a strategic and value-added partner for FNZ and joining the company’s existing investors.
Rob Heyvaertfounder and managing partner at Motive Partners, who will join the FNZ Group board as a non-executive director upon completion, said: “We couldn’t be more excited about our collective opportunity to work alongside the FNZ team. Since FNZ’s inception, its growth trajectory has been extraordinary, and as we combine our strength of expertise, knowledge and access to the global financial services ecosystem, we have the opportunity to deliver an exceptional value proposition to wealth and asset management clients worldwide to meet growing demand.”
FNZ is the global platform provider in the wealth management industry, partnering with over 650 of the world’s leading financial institutions and over 8,000 wealth management firms. With over 4,000 employees in 21 countries, FNZ’s mission is to unlock wealth, empowering everyone to create wealth through personal investment, aligned with the things that matter most to them, on their own terms.
FNZ combines technology, infrastructure and investment operations in a single, state-of-the-art platform that enables its institutional clients to create hyper-personalized and innovative products and services, perfectly aligned with the needs of their clients. To date, FNZ has empowered over 20 million people, across all wealth segments, to invest efficiently, simply and transparently, making wealth management accessible to everyone.
About RPC Investments
Canada Pension Plan Investment Board (CPP Investments)MT) is a professional investment management organization that manages the fund in the best interests of more than 20 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified asset portfolios, investments are made worldwide in public equities, private equities, real estate, infrastructure and fixed income securities. Based at Torontowith offices at hong kong, London, Luxemburg, Bombay, New York City, San FranciscoSao Paulo and sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. AT December 31, 2021the Fund has totaled C$550.4 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Facebook or Twitter.
About Motive Partners
Motive Partners is a specialist private equity firm with offices in New York City and Londonfocusing on growth and buyout capital investments in software and information services companies based in North America and Europe and serving five main subsectors: Banking and Payments, Capital Markets, Data and Analytics, Wealth and Investment Management, and Insurance. Motive Partners brings differentiated expertise, connectivity and capabilities to create long-term value in fintech companies.
More information about Motive Partners can be found at www.motivepartners.com
SOURCE Canada Pension Plan Investment Board