Fintech firm sold for £1.65bn
Gore buys FNZ in one of year’s largest fintech deals
FNZ’s Tanfield offices employ 300 staff
Global wealth management company FNZ, which relocated its corporate HQ to Edinburgh, has been acquired by Al Gore’s Generation Investment Management and Canadian pension fund Caisse de Depot et Placement du Quebec.
In one of the year’s largest fintech deals, the acquisition of a two-thirds stake held by the growth equity firms General Atlantic and HIG Capital values FNZ at about £1.65 billion. A sale had been predicted earlier this year.
FNZ was founded in New Zealand in 2003 by Adrian Durham to provide services to asset managers, banks and insurers including Aviva, Barclays, Standard Life Aberdeen and Zurich. It opened its office in Edinburgh in 2012.
Mr Durham said: “The deal will help us grow share in the wealth-management platform market to trillions versus hundreds of billions. You have to be a scale player.”
Daily Business reported speculation of a sale in July
He and the firm’s 400 employees will retain about a third of the company following the transaction. Some 300 work at the former Standard Life building at Tanfield, Canonmills in Edinburgh from where it is expanding its European business. It also has staff in Asia and the Czech Republic.
The company’s 2016 results, the most recent to be published, show the business more than doubled post-tax profits on the previous year and assets under administration were up 46.8% at £74.4bn.