General Atlantic is to acquire a minority equity stake in FNZ, a provider of technology, transaction and custody services to the wealth management industry, investing alongside HIG Europe and the management team. Completion of the transaction remains subject to EU competition commission approval.
HIG originally backed an MBO of FNZ in early 2009. FNZ has subsequently seen significant expansion in its customer base in the UK, Australia and New Zealand, developing long term partnerships with blue-chip customers including Standard Life, AXA, JP Morgan, HSBC, AMP, National Australia Bank, Friends Life, UBS, Zurich and Close Brothers Asset Management.
FNZ’s technology, transaction and custody services enable these institutions to provide best-in-class wealth management solutions to financial advisers, end-investors and the workplace that are efficient, flexible, transparent and scalable, supporting market, demographic and regulatory trends worldwide.
Since early 2009, FNZ’s assets under administration on behalf of its institutional customers have grown from GBP4 billion to over GBP21 billion. The company has 650 asset servicing and technology staff in offices in the UK, Australia, New Zealand and the Czech Republic.
Adrian Durham (pictured), CEO of FNZ, says: “General Atlantic will be an excellent value-added partner for FNZ given its strong track record in growth equity investing, excellent global reputation and expertise in the financial services sector. We are delighted to have them on board as we continue to deliver the next phase of growth and international expansion into Asia and other key markets, based on a services platform that provides end-to-end connectivity across the global wealth management value chain.”
John Bernstein, Managing Director at General Atlantic said, “We have long followed wrap platforms and believe that FNZ combines a market leading product and services offering with a highly talented management team. We are impressed with the extraordinary achievements of Adrian and his team over the past few years and are pleased to have the opportunity to contribute our strategic support and long-term partnership approach to further FNZ’s development and global expansion.”
Matthias Allgaier, Managing Director at HIG, says: “FNZ has outstanding technology and very strong management. While the transaction provides an attractive partial equity realisation for H.I.G. Europe, the decision to maintain a significant stake in the business reflects H.I.G.’s strong on-going commitment to FNZ.”
FNZ and HIG were advised by Lazard as financial advisor and Kirkland & Ellis International LLP as legal advisor on the transaction. General Atlantic was advised by Weil, Gotshal & Manges and Deloitte.
