On Friday, wealth management technology platform FNZ announced that it has raised $1.4 billion from Canadian institutional investor CPP Investments and New York-based specialist private equity firm Motive Partners. The deal, hailed in a statement from the parties as one of the largest ever primary capital raises in the wealth management sector, values New Zealand-based FNZ at more than $20 billion.
In a statement on the investment, FNZ said the new funds will help it further accelerate its growth through increased R&D, as well as driving growth in markets that the company has recently entered, in particular North America, as it targets a greater share of the estimated $100 trillion global wealth market. Most of the investment is coming from CPP Investments, which has committed $1.1 billion.
Through its platform, FNZ works with over 650 financial institutions, administering more than $1.5 trillion for more than 20 million people across multiple wealth segments, including savings and retirement, affluent and high-net worth investors. Institutional customers on the platform are able to create hyper-personalized and innovative products and services that align with the needs of their clients.
Since it was established New Zealand in 2003, FNZ has demonstrated exponential growth. In the last five years, it has grown assets under administration more than 7x, from $212 billion to over $1.5 trillion. The company’s roster of more than 650 large financial institutions and over 8,000 wealth management firms in 21 countries includes abrdn, Allianz, Aviva, Barclays, BNP Paribas Cardif, BNZ, Colonial First State, Generali, Jarden, Lloyds, Momentum, NAB, Quilter, Swedbank, UOB and Vanguard.
CPP Investments and Motive Partners represent the fifth and sixth external shareholders in FNZ. In 2018, Canada’s CDPQ and Generation Investment Management acquired a majority stake in the company. They were joined in 2021 by Singapore sovereign wealth fund 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.
“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,” FNZ Founder and Group CEO Adrian Durham said in a comment on the investment.
“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,” said Hafiz Lalani, CPP Investments Managing Director and Head of Europe, Direct Private Equity. “Partnered with Motive, we believe we bring a unique combination of long-term capital and specialised expertise in the wealth management sector. We look forward to being a strategic and value-added partner to FNZ and to joining the business’ existing investors.”
“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 customers all over the world to meet growing demand,” said Motive Partners Founder and Managing Partner Rob Hevaert, who will join the FNZ Group Board in connection with the investment.
In December, FNZ acquired Switzerland’s Appway, a leading developer of client onboarding and service technology for financial institutions, including 10 of the world’s 25 largest wealth managers.
