FNZ raises $1.4b in one of largest ever funding rounds in wealth management

Rick Steves

In the last five years, it has grown assets under administration over seven-fold from US$212 billion to over US$1.5 trillion.

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CPP Investments and Motive Partners commit US$1.4 billion in new capital in one of the largest ever primary capital raises in the wealth management sector

FNZ has raised US$1.4 billion in new equity funding from Canada Pension Plan Investment Board (CPP Investments) and Motive, valuing the wealth management platform at over US$20 billion.

This was one of the largest ever primary equity raises in the wealth management sector as FNZ looks to firmly expand geographically and innovate.

AUM grew seven-fold in the last five years

Administering over US$1.5 trillion on its platform for over 20 million customers worldwide, FNZ will be using the new funding to accelerate its mission to empower people to create wealth through personal investment and target a greater share of the c.US$100 trillion global wealth market.

FNZ works with over 650 financial institutions to cater to 20 million people from all wealth segments, including savings and retirement, affluent and high-net worth, to create wealth through long-term investment.

The capital raise will fuel increased R&D, as well as drive growth in markets that FNZ has recently entered, in particular North America. CPP Investments is investing a total of US$1.1 billion.

In the last five years, it has grown assets under administration over seven-fold from US$212 billion to over US$1.5 trillion.

Partnering with 650+ large financial institutions and 8,000+ wealth management firms in 21 countries, a few of FNZ’s partners include abrdn, Allianz, Aviva, Barclays, BNP Paribas Cardif, BNZ, Colonial First State, Generali, Jarden, Lloyds, Momentum, NAB, Quilter, Swedbank, UOB and Vanguard.

Adrian Durham, Founder & Group CEO 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 US$1billion 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, said: “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.

“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.”

Rob Heyvaert, Founder & Managing Partner at Motive Partners, added: “We could not be more excited about our collective opportunity to work alongside the FNZ team. 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.”

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