California-based global fintech firm Investcloud has recapitalised the business at $1bn (£730m, €824m) following investment from Motive Partners and Clearlake Capital Group.
Under the agreement, Investcloud will merge with Motive’s two portfolio businesses, Finantix and Tegra118, to create a global software-as-a-service (Saas) wealth solutions platform.
Following the merger, the global fintech business will reach $4trn in assets.
‘Fuel’ growth
John Wise, Investcloud’s co-founder and chief executive, said: “The recapitalisation achieves our first objective. At a valuation of $1bn, 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 the Motive team, Clearlake and the Tegra118 and Finantix businesses.
“They enable us to accelerate our plans to build platforms serving the main markets in global wealth and asset management, each utilising the proven Saas design principles, architecture and data models of the Investcloud platform.”
European and Asia expansion
Tegra118 adds a network of connections between fund sponsors and distributors to Investcloud’s digital advice offering for advisory networks and financial advisers.
Finantix brings in a presence in Europe and Asia, especially within the private banking sector.
Investcloud already operates in the US, UK, Switzerland, Singapore and Australia.
Rob Heyvaert, founder and managing partner at Motive Partners and chairman of InvestCloud, said: “Huge forces are impacting the wealth sector. Whether it’s demographics, democratisation or disintermediation, the sector will change massively in years ahead.
“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-personalised solutions.”
Restructure
As a result of the merger, Investcloud has re-organised its business to serve clients through four different operations:
- The Wealth Adviser Platform will continue to build on its current business in North America, Europe, the UK and Asia;
- The Private Banking Platform will use the Finantix offering as its core to create an international solution;
- The Financial Supermarket will use the Tegra118 capabilities and its network of distribution relationships with asset managers, broker-dealers and custodians: and,
- The Custom Financial Platform will allow clients to design and build their own intellectual property through a cloud-based service.
