Hg, leading global investor in software and services, is to acquire a majority interest in Riskalyze, a risk-centric wealth management platform serving financial advisers, enterprises, and asset managers.
Terms of the deal have not been disclosed.
Riskalyze’s industry-leading client and portfolio risk technology is rapidly emerging as an industry standard for adviser, client and portfolio risk analytics across the US wealth management ecosystem. Today, Riskalyze’s platform supports tens of thousands of financial advisors who use it to manage millions of client accounts with over $400 billion in assets.
The transaction marks a major inflection point for the fast-growing company, enabling the business to continue to invest in its strategy to serve the advisor desktop, providing risk, portfolio analytics, proposal, trading and compliance solutions to advisors and wealth management enterprises. The company has added thousands of advisors to the platform in the last 12 months, and has signed key enterprise clients such as Cetera, Atria Wealth, Grove Point, Hightower, Boston Private and Private Advisor Group.
Riskalyze Co-Founder Aaron Klein will reinvest the majority of his holdings into the recapitalised firm, and will continue to lead the company as CEO and a member of the Board of Directors.
“We are thrilled to welcome Hg to Team Riskalyze and are excited to have found the perfect partner to write this next chapter of our story,” says Klein. “When we set out on this journey a decade ago, we quickly came to realise that we weren’t just building a company, but a movement – and the tens of thousands of advisors who comprise the Fearless Investing Movement took a big step forward today into a future of innovation and growth.”
For Hg, the deal represents an opportunity to support a leading software as a service (SaaS) platform and to build and scale a strong wealth management technology business in the United States. Hg is a software and services investor with extensive experience in the global fintech sector, having invested in over 10 fintech leaders in just over five years and investing over $1 billion in the sector to date. Hg has a track record of partnering with founder teams of high-quality and scalable technology solutions to the financial advisor ecosystem. This scale and experience will provide Riskalyze with ample access to additional capital and expertise as needed to complete future acquisitions or to support organic growth.
Max Dewez, Director at Hg in New York, says: “Riskalyze has seen significant momentum in the last few years. The team have successfully established themselves as providing a best-in-class SaaS tool that solves real business challenges in a sector still seeing increasing tech adoption. Riskalyze’s software enables advisors to participate in key trends in wealth management and offer more holistic engagement with their clients. We’re delighted to join the team and support the momentum of a modern software business of scale, backed by a visionary founder CEO and strong supporting team.”
Riskalyze was advised by Financial Technology Partners as financial advisor and Morris Manning & Martin as legal counsel. Hg was advised by Skadden Arps as legal counsel. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close before the end of September. Hg’s Sebastien Briens, Max Dewez and Richard Earnshaw will join the Board after closing. The company expects to announce additional board appointments in the near future.
