In a huge primary equity raise, global wealth management platform FNZ announced that it has netted $1.4 billion in new equity funding from Canada Pension Plan Investment Board and Motive Partners. The investment, which is one of the largest ever made in the wealth management sector, values FNZ at more than $20 billion.
FNZ partners with more than 650 financial institutions and 8,000 wealth management firms in 21 countries worldwide, offering a single platform for people of all stripes to make their money grow. Through FNZ, wealth managers provide personal and transparent solutions for clients, with minimized cost and complexity. Currently, the company serves more than 20 million customers, amounting to $1.5 trillion in assets, a seven-fold increase in the last five years.
CPP’s long-term capital and Motive’s sector experience will help spur the 19-year-old company’s next growth phase. The significant funding signifies trust in FNZ’s business model and potential for expansion, and it will be directed toward increased research and development and a focus on the $100 trillion North American market, which the New Zealand-based company recently entered.
“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,” said Rob Heyvaert, Motive’s Founder and Managing Partner.
CPP and Motive are the firm’s fifth and sixth external shareholders. CDPQ and Generation Investment Management acquired a majority stake in 2018. Temasek joined them in 2021, expanding FNZ's penetration into Asian markets. The company also has 800 employee-shareholders. No investors will be selling any secondary shares in the transaction.
Toronto-based CPP is a professional investment management organization with 20 million contributors and beneficiaries. It makes global investments in public and private equity, real estate, infrastructure, and fixed income. It has eight other offices worldwide.
Motive, a specialist private equity firm, concentrates on growth equity and buyout investments in software and information services companies. It has offices in New York and London.