Wealth Management Platform FNZ Seeks to Raise $1 Billion for Expansion

(Bloomberg) -- Digital wealth management platform FNZ is in talks to raise about $1 billion of fresh capital to fuel its global expansion, according to people familiar with the matter. 

The company is working with Lazard Ltd. to reach out to potential investors, the people said, asking not to be identified because the information is private. It plans to use the funds to grow its business and support future acquisitions, one of the people said. 

FNZ’s platform-as-a-service allows financial institutions to transfer responsibility for the technology, investment operations and asset servicing underlying their wealth management businesses. Its infrastructure is used by more than 150 banks, asset managers and life insurers to oversee more than $1.5 trillion in assets. 

The company’s customers include Aviva Plc, Vanguard Group Inc., Barclays Plc, Abrdn Plc and Banco Santander SA, according to its website. 

Former U.S. Vice President Al Gore’s Generation Investment Management and Canadian pension fund Caisse de Depot et Placement du Quebec took control of FNZ in a 2018 deal valuing the business at about 1.7 billion pounds ($2.2 billion). Singapore state investment company Temasek Holdings Pte bought a stake in FNZ last year. Employees also own about 30% of the business, its website shows.  

FNZ, led by founder Adrian Durham, has made a series of acquisitions recently. It said this week it’s buying Appway, a maker of client servicing tools for financial institutions. 

The company agreed last month to acquire German trading and custody platform Fondsdepot Bank, following up on a deal in October to purchase New Zealand digital investment platform Hatch. It completed the takeover of State Street Corp.’s wealth manager services business in April. 

Mergermarket reported Dec. 9 that FNZ is seeking an unspecified amount of new capital, citing unidentified people. Deliberations are ongoing, and details of the fundraising could still change, the people said. 

A representative for FNZ declined to comment, while a spokesperson for Lazard didn’t immediately respond to a request for comment. 

©2021 Bloomberg L.P.