Investment firm co-founded by Al Gore involved in $2.2M fintech deal

Investment firm co-founded by Al Gore involved in $2.2M fintech deal
Generation Investment Management, Canadian pension fund team up to acquire control of wealth-management services provider FNZ.
OCT 09, 2018
By  Bloomberg

Al Gore's Generation Investment Management and Canadian pension fund Caisse de Depot et Placement du Quebec teamed up to acquire control of wealth-management services provider FNZ in one of the year's largest fintech deals. The acquisition of a two-thirds stake held by the private equity firms General Atlantic and HIG Capital values FNZ at about 1.65 billion pounds ($2.2 billion), according to a statement from the companies Tuesday that confirmed an earlier report by Bloomberg News. The deal is the first investment to be made by a new partnership formed by Canada's second-largest pension fund and the investment firm co-founded by former U.S. Vice President Gore and former Goldman Sachs Group Inc. partner David Blood. The duo plan to deploy $3 billion initially for investments with an 8- to 15-year duration, taking a longer view than the typical private equity deal. The FNZ agreement adds to a surge in fintech transactions, which totaled more than $39 billion in the first half amid investments in payment processing, financial data and machine learning, according to a report from advisory firm Hampleton Partners. FNZ, founded in New Zealand in 2003 by Adrian Durham, provides services to asset managers, banks and insurers including behemoths such as Aviva, Barclays and Vanguard Group Inc. While its clients currently oversee more than 330 billion pounds in assets under administration, the capital infusion will help FNZ tap a bigger share of the $30 trillion global market, according to Durham. "The deal will help us grow share in the wealth-management platform market to trillions versus hundreds of billions," said Durham, who has grown the company to about 1,400 employees. "You have to be a scale player." Durham and the firm's 400 employees with shares plan to retain about a third of the company following the transaction. FNZ joined in a 2009 management buyout with HIG Capital, while General Atlantic provided an additional investment in 2012. HIG, which initially injected less than 10 million pounds in FNZ's equity, is now selling its stake for about 450 million pounds, according to a person familiar with the matter, who asked not to be identified because the transaction was private. JPMorgan Chase & Co. advised the sellers.

Latest News

Vanilla locks in US patent for estate planning tech, strengthening advisor reach
Vanilla locks in US patent for estate planning tech, strengthening advisor reach

The wealth tech platform says its newly secured patent represents crucial advances in digitizing outdated manual processes.

Wealth managers weigh in on Trump's potential order to open 401(k) plans to alternatives
Wealth managers weigh in on Trump's potential order to open 401(k) plans to alternatives

Financial advisors offer their thoughts on the President's widely anticipated executive order to open retirement accounts to private market assets.

SEC: First Liberty misused fresh investor money in $140 million scheme
SEC: First Liberty misused fresh investor money in $140 million scheme

The SEC says First Liberty lured investors with high-yield promissory notes, then used fresh cash to cover defaults and interest owed to earlier investors.

SEC hits pause on Bitwise ETF offering broad crypto exposure
SEC hits pause on Bitwise ETF offering broad crypto exposure

The agency's decision to stay the approval process just hours after signing off highlights ongoing ambiguity for new crypto-focused ETF offerings.

Advisor moves: LPL swipes veteran advisors from Wells Fargo, Lincoln Investment
Advisor moves: LPL swipes veteran advisors from Wells Fargo, Lincoln Investment

Meanwhile, Cetera has boosted its own recruitment numbers with new additions from LPL and Osaic.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.