FNZ, the wealth management platform, has acquired $1.4 billion in new equity funding from Canada Pension Plan Investment Board and Motive Partners, in one of the largest primary equity raises in the wealth management industry.
The raise now values FNZ at more than $20 billion as the firm continues to engage in innovative initiatives while expanding its global presence.
FNZ works with the industry in order to make wealth management and financial advice accessible to many more consumers. At present, FNZ works with more than 650 financial institutions in order to empower more than 20 million consumers from all wealth segments, such as savings and retirement, affluent and high-net worth, in order to generate wealth via long-term investment, aligned or consistent with things they really care about and also on their own terms.
FNZ brings together tech, infrastructure and investment operations in a single platform that frees its institutional clients to develop innovative products that are aligned with the requirements of the customers.
This massive investment reflects CPP Investments’ and Motive’s confidence and support of FNZ’s business model and growth prospects (geographically and via market consolidation). The proceeds should help FNZ accelerate its growth via increased R&D, along with supporting growth in markets that FNZ have recently entered, in particular North America. CPP Investments is investing a total of $1.1 billion.
Since its launch in 2003 in New Zealand, FNZ has demonstrated consistent growth. In the past 5 years, it has grown assets under administration over 7x from $212 billion to more than $1.5 trillion. The firm now works with more than 650 large financial institutions and more than 8,000 wealth managers in 21 countries. These firms reportedly include abrdn, Allianz, Aviva, Barclays, BNP Paribas Cardif, BNZ, Colonial First State, Generali, Jarden, Lloyds, Momentum, NAB, Quilter, Swedbank, UOB and Vanguard.
This considerable growth is expected to continue as FNZ focuses on market penetration, targeting a larger share of the $100 trillion international wealth market.
The firm has attracted consistent investment interest and CPP Investments and Motive Partners represent the some of the biggest external shareholders in FNZ. In 2018, CDPQ and Generation Investment Management obtained a majority stake in the firm, in a partnership built around sustainable investment. They were joined last year by Temasek, enhancing FNZ’s reach into major Asian markets. All investors remain long-term shareholders, along with over 800 worker shareholders. No investors will be selling off secondary shares in the transaction.
Lazard & Co. Limited served as exclusive financial adviser, and Allen & Overy LLP was the lead legal adviser, to FNZ in relation to the equity capital raise.
Adrian Durham, Founder & Group CEO of FNZ, stated:
“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.”
Durham added:
“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, MD, Head of Europe, Direct Private Equity at CPP Investments, remarked:
“FNZ offers a unique, end-to-end value proposition which enables the world’s leading wealth managers to provide personalised, transparent and accessible solutions to enhance consumers’ long-term savings while reducing cost and complexity. FNZ has seen considerable success and we are excited to support FNZ and its leadership in continuing to deliver on their vision to expand FNZ’s global footprint, while at the same time delivering attractive risk-adjusted returns for CPP contributors and beneficiaries.”