Los Angeles based Fintech InvestCloud Completes Recapitalization, Wealth Platform Now Valued at $1B

California-headquartered Fintech firm InvestCloud has reportedly completed a recapitalization that now values the platform at around $1 billion.

According to a release, new financial investors are led by Motive Partners with Clearlake Capital Group, L.P. and also includes other InvestCloud client shareholders. Under the terms of the deal, Motive Partners will be contributing two portfolio businesses, Finantix and Tegra118, into InvestCloud, which will help create and support an international software-as-a-service (SaaS) wealth solutions platform.

John Wise, InvestCloud’s Co-founder and CEO, stated:

“The recapitalization achieves our first objective. At a valuation of $1 billion, we can reward early investors in the business, while injecting new capital to fuel the next stage of our growth, further supporting our clients’ needs. Crucial to our ultimate objective – which is to build the world’s largest financial supermarket – is the partnership with Rob and the Motive team, Clearlake and the Tegra118 and Finantix businesses.” 

Wise added that together with Cheryl, Christine, and their talented teams, they enable them to accelerate their plans to create platforms serving the major markets in global wealth and asset management, each “utilizing the proven SaaS design principles, architecture and data models of the InvestCloud platform.”

Wise also mentioned that Tegra118 maintains the largest integrated platform in the United States, with fund sponsors (asset managers: 9 of the top 12 in the USA) “connecting to distributors (wealth managers: 7 of the top 10 Broker-Dealers in the USA) for financial products.”

He continued:

“Combining this with the Digital Platform of InvestCloud provides the best-in-class digital advice to Advisor Networks and Advisors. With our existing clients, InvestCloud will now build a worldwide financial supermarket using Tegra118 as the base. Finantix adds further strength in Europe and Asia – particularly in the private banking space – to fulfill our ambition to distribute the InvestCloud platform and our collective solutions globally.”

Rob Heyvaert, Founder and Managing Partner, Motive Partners and Chairman of InvestCloud, said that major forces are now affecting the wealth sector. He claims that whether it’s demographics, democratization or disintermediation, the industry will “change massively in years ahead.”

Heyvaert remarked:

“We believe the use of InvestCloud’s cloud technology and platform with our existing assets (Tegra118 and Finantix) will determine the winners. This investment, and the commitment of two of our existing businesses and their exceptional talent, creates a global wealth platform provider that has proven technology with the ability to scale and serve the needs of our global clients and their customers through existing, new and hyper-personalized solutions.”

Behdad Eghbali, Co-Founder and Managing Partner, and James Pade, Partner, of Clearlake, stated that wealth managers are “faced with several operational complexities, including increased demand for tailored, diverse investment products as a result of the shift towards open banking,” They also mentioned that they think that InvestCloud’s software solutions, along with Finantix and Tegra118, “uniquely position the company to address these trends and deliver significant value to its global customer base.”

InvestCloud will now have over $4 trillion of assets on its platform and revenues of more than $285 million, with a team of more than 900 professionals with a global presence, by adding locations and expert knowledge of European and Asian markets.

InvestCloud will reportedly organize its business to serve customers via several different market opportunities (within the wealth and asset management space):

  • Wealth Advisor Platform – with “over $2 trillion AUM already, the InvestCloud platform will continue to build upon its success in North America, the UK, continental Europe and Asia.”
  • Private Banking Platform – using the Finantix product as its core, InvestCloud will “offer an international private banking platform using its proven technology.”
  • Financial Supermarket – using the Tegra118 product “(already $2 trillion AUM), and its extensive network of existing distribution relationships with asset managers, broker-dealers and custodians, InvestCloud will continue to build an international financial supermarket to connect manufacturers (asset managers) to distributors (wealth managers).”
  • Custom Financial Platform – using the “hyper-modular cloud platform, clients can truly design and build unique Intellectual Property (IP) using InvestCloud’s design-first methods and AI PWP (Programs Writing Programs)TM to create cloud solutions.”

John Wise is CEO of InvestCloud, and Rob Heyvaert (Founder & Managing Partner, Motive Partners) is Chairman. Cheryl Nash of Tegra118 will serve as CEO of the Financial Supermarket unit and Christine Mar Ciriani of Finantix will serve as CEO of the Private Banking unit. Both will reportedly join the global InvestCloud management team reporting directly to John Wise.

As covered in September 2020, Investment bank, wealth manager, and Oppenheimer Holdings subsidiary, Oppenheimer & Co, Inc. had announced that it had formed a strategic alliance with global fintech firm, InvestCloud. Oppenheimer reported that the partnership will accelerate the buildout of its digital experience platform for the firm’s financial advisors and other professionals, as well as their clients.

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