Canada Pension Plan Investment Board (CPP) and Motive Partners have injected $1.4bn (£1bn, €1.2bn) into global wealth platform FNZ.
The funds will be used to accelerate the platform’s growth both “geographically and through market consolidation”, the firm said.
FNZ intends to boost its research and development efforts, as well as expand in North America. This can also help make them eligible for r&d tax credits.
CPP investments and Motive Partners have become the fifth and sixth external shareholders in FNZ, after CDPQ and Generation Investment management acquired a majority stake in the platform in 2018, followed by Temasek in 2021.
Adrian Durham, founder and group chief executive 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 $1bn 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, added: “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.”
Rob Heyvaert, founder and managing partner at Motive Partners, who will join the FNZ Group board as a non-executive director on completion, said: “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.”
