Private equity investors, HIG Capital and General Atlantic, have sold their stake (two-thirds) in Edinburgh-based fintech specialist FNZ to Generation Investment Management, which was founded by former US VP, Al Gore, and Canadian pension fund Caisse de Depot et Placement du Quebec.
Subject to regulatory approval, the deal will be one of the world’s largest fintech transactions of 2018 and is estimated to be worth more than £1.6 billion. JP Morgan acted as financial adviser to HIG Capital and General Atlantic.
In 2006, FNZ relocated its head office from New Zealand to Edinburgh. The company develops wealth management platform technology used by financial services firms including Standard Life Aberdeen, Santander and Lloyds Bank. FNZ is responsible for more than £300bn in assets under administration held by around five million customers of some of the world’s largest financial institutions.
Employee Shareholders to Keep One Third of Equity
The company has more than 1,400 employees in the UK, Czech Republic, Shanghai, Singapore, Australia and New Zealand. Adrian Durham, CEO and founder of FNZ, stated that the employee shareholders will continue to own about one third of the equity of the company following this transaction.
Durham said of the deal: “We see a unique opportunity to create a global-scale platform for wealth management. This requires a willingness to invest for the long-term.
“The firm’s 400 employee shareholders are firmly committed to this outcome and CDPQ-Generation is the perfect partner, given its unique 8-15 year time horizon and focus on sustainable investments.”
David Blood, senior partner and co-founder at Generation, said: “FNZ represents an outstanding first investment for our new partnership. It is an exceptional company with a management team that has demonstrated its ability to innovate and grow in the fast-moving fintech sector.
“We believe our long-term approach will suit the company and allow it to continue to invest in its technology and service proposition to the benefit of savers and pensioners, as well its employees, customers and investors”.