FNZ raises $1.4 billion to accelerate global growth
FNZ, the global wealth management platform, has secured $1.4 billion in one of the largest ever primary equity raises in the sector.
The funding from Canada Pension Plan Investment Board and Motive Partners values FNZ at more than $20 billion.
FNZ, which has offices in Edinburgh, works with more than 650 financial institutions and 20 million people from all wealth segments, including savings and retirement, affluent and high-net worth individuals. It combines technology, infrastructure and investment operations in a single platform.
The capital raise will help FNZ further accelerate its growth through increased R&D, as well as driving growth in markets that FNZ have recently entered, in particular North America. CPP Investments is investing a total of $1.1bn.
Since its foundation in 2003 in New Zealand, FNZ has demonstrated exponential growth. In the last five years, it has grown assets under administration over seven-fold from $212bn to over $1.5 trillion.
The company now partners with more than 650 large financial institutions and 8,000 wealth management firms in 21 countries. This growth is set to continue as FNZ targets a greater share of the c.$100 trillion global wealth market.
The company has consistently attracted strong investment interest and CPP Investments and Motive Partners represent the fifth and sixth external shareholders in FNZ.
In 2018, CDPQ and Generation Investment Management acquired a majority stake in the company, in a partnership built around long-term and sustainable investment. They were joined in 2021 by Temasek, enhancing FNZ’s reach into Asian markets.
All investors remain long-term and committed shareholders, alongside more than 800 employee-shareholders. No investors will be selling any secondary shares in the transaction.
Lazard & Co. Limited acted as exclusive financial adviser, and Allen & Overy LLP acted as lead legal adviser, to FNZ in relation to the equity capital raise.
Commenting on today’s transaction, Adrian Durham, founder & group CEO of FNZ, 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.”
Hafiz Lalani, managing director, head of Europe, direct private equity at CPP Investments, said: “FNZ offers a unique, end-to-end value proposition.”
Rob Heyvaert, founder & managing partner at Motive Partners, who will join the FNZ Group board as a non-executive director on completion, said: “We could not be more excited about our collective opportunity to work alongside the FNZ team. Since FNZ’s inception, its growth trajectory has been extraordinary.”