Pension giant participates in one of wealth sector's largest-ever primary raises with co-investment in US$1.4B capital commitment
In one of the largest ever primary equity raises in the wealth management sector, FNZ, the global wealth management platform, announced that it has obtained US$1.4 billion in fresh equity capital from Canada Pension Plan Investment Board and Motive Partners.
As it continues to innovate and expand its regional footprint across the world, the funding values FNZ at over US$20 billion. FNZ collaborates with the entire industry as it strives to make wealth management and financial advice more widely accessible.
Adrian Durham, Founder & Group CEO of FNZ, commented on today’s agreement, “Today's announcement represents a resounding endorsement of FNZ's track record and future strategy. The company has successfully demonstrated exponential growth in the scale and depth of customer relationships and geographic expansion with platform revenues more than quadrupling in the past three years to over US$1billion per annum, whilst also growing profitably and sustainably.”
Over 20 million people from all wealth sectors, including savings and retirement, affluent and high-net worth, are now able to accumulate wealth through long-term investing, aligned with their priorities, and on their own terms, thanks to FNZ's partnership with over 650 financial institutions.
Technology, infrastructure, and investment operations are all integrated into a single state-of-the-art platform, allowing FNZ's institutional customers to create hyper-personalized and innovative products and services that are fully responsive to their clients' needs.
By increasing R&D and driving expansion in markets that FNZ has just entered, such as North America, the capital raise will help FNZ accelerate its growth even further. CPP Investments is making a total of $1.1 billion in the project.
Read more: CPP Investments provides Canadian private equity market with $200 million infusion
FNZ has grown at a breakneck pace since its inception in New Zealand in 2003. It has increased its assets under management by sevenfold in the last five years, from US$212 billion dollars to more than $1.5 trillion dollars.
Among the 650 significant financial institutions and 8,000 wealth management businesses that the company now works with in 21 countries are the likes of Allianz, Aviv, BNP Paribas Cardif, and Vanguard. As FNZ expands its market penetration, it expects to gain a larger piece of the global wealth market, which is estimated to be worth around US$100 trillion.
CPP Investments and Motive Partners are FNZ's fifth and sixth external owners, respectively, and the company has constantly generated considerable investor interest. In 2018, CDPQ and Generation Investment Management bought a controlling share in the company, forming a long-term investment partnership.
According to Hafiz Lalani, Managing Director, Head of Europe, Direct Private Equity at CPP Investments: “FNZ offers a unique, end-to-end value proposition which enables the world's leading wealth managers to provide personalised, transparent and accessible solutions to enhance consumers' long-term savings while reducing cost and complexity. FNZ has seen considerable success and we are excited to support FNZ and its leadership in continuing to deliver on their vision to expand FNZ's global footprint, while at the same time delivering attractive risk-adjusted returns for CPP contributors and beneficiaries.”
