Docupace, a maker of cloud-based wealth management software, has secured a significant growth equity investment from FTV Capital, a sector-focused growth equity investment firm.
This investment enables Docupace to expand its product and service offerings to its broker-dealer, registered investment adviser (RIA), and insurance firm customers, as well as with the financial advisors affiliated with these businesses.
Docupace also announced the appointment of David Knoch, former president of 1st Global, to the role of chief executive officer, effective immediately.
The investment and leadership FTV Capital brings to the company will help Docupace accelerate its client-centric initiatives of expanding its capabilities and support, advancing product development, and continuing their thought leadership in automating the ways front and back-offices operate, communicate, and generate new business.
“As a long-time advocate and client of Docupace, I am excited to lead the company and accelerate its growth strategy,” says Knoch. “During my decades leading one of the country’s most successful independent wealth management firms, I know how important it is to make the client experience effortless. Robust operating practices translate into better client outcomes, yet too few firms have fully automated the front and back office. Our mission is to solve for this, and with innovative products and platforms that are a natural outgrowth of a culture that prizes anticipating and developing solutions for clients ahead of their needs, and in advance of industry trends, we will do just that.”
Before joining Docupace, as president of 1st Global, a research and consulting partner to CPA, wealth management and tax planning firms, Knoch grew revenue and profitability margins by over 50 per cent, increased client satisfaction to 97 per cent, grew assets under management by 154 per cent, and transformed recurring revenue from 55 per cent to 81 per cent of total revenue. Additionally, he developed industry leading investment advisory programs and technologies, growing assets under management from USD900 million to USD10 billion over 14 years, a 17.1 per cent annual growth rate. Most recently, Knoch led the sale of 1st Global to Blucora, the leading provider of tax-smart financial solutions. In 2018 and 2019, the readers of Investment Advisor Magazine voted Knoch as one of the 25 most influential people in the investment advisory profession and Knoch served as the 2019 chairman of the board for the Financial Services Institute.
With an 18-year track record of creating digital innovations for wealth management firms, Docupace’s highly-configurable, low code development platform delivers solutions that include client and adviser onboarding, document management, standardised workflows, robust approval processes, and compliant storage as an integrated platform that eliminates the need for multiple vendors.
“We are excited by the innovation taking place across the wealth management landscape and Docupace’s commitment to reducing paper and increasing back-office automation,” says Robert Anderson, partner at FTV Capital. “At FTV, we are passionate about the future of digitisation and the crucial role it plays in empowering financial advice providers and the firms that serve them, especially in an era when organisations need to be more flexible in enabling remote work solutions, and more immediately responsive to client needs in the face of market uncertainty.”
“From the outset of our discussions, it was clear that FTV Capital offered the ideal combination of deep domain expertise and value-add,” says Michael Pinsker, founder and president, Docupace. “In the coming weeks and months, we have an exciting pipeline of near-term capabilities for our clients that we will be unveiling for the first time. With the backing of FTV Capital, Docupace begins a new era of success, in alignment with a business partner that shares our vision and possesses a unique ability to help us accelerate our growth as we leverage FTV’s global partner network and more than 20 years of experience working with companies like ours.”
Alongside existing board member Pinsker, Docupace’s board of directors has been modified to encompass Knoch and Anderson, as well as Brad Bernstein and Adam Hallquist from FTV Capital.
Former Docupace chief executive officer Mark Tapling, who successfully advanced the company’s culture, financial performance, client service and execution over the past two years, will remain with the company for an interim period to ensure a smooth and seamless transition of leadership. Pinsker will serve as president of Docupace, providing long-term continuity, institutional expertise, and strategic guidance.