CPP Investments and Motive Partners commit US$1.4 billion in new capital in one of the largest ever primary capital raises in the wealth management sector
Transaction values FNZ at over US$20 billion
The combination of Motive’s sector expertise with CPP Investments’ long-term capital provides the foundations for the next phase of FNZ’s growth
FNZ now administers over US$1.5 trillion on its platform for over 20 million customers worldwide
FNZ accelerates its mission to open-up wealth, empowering all people to create wealth through personal investment, aligned with things they care about the most, on their own terms
TORONTO, NEW YORK & LONDON, 11 February 2022: FNZ, the global wealth management platform, today announces that it has secured US$1.4 billion in new equity funding from Canada Pension Plan Investment Board (“CPP Investments”) and Motive Partners (“Motive”), in one of the largest ever primary equity raises in the wealth management sector. The fundraising values FNZ at over US$20 billion as it continues its record of innovation and geographical expansion.
FNZ partners with the entire industry to make wealth management and financial advice accessible to more people. Today, FNZ works with over 650 financial institutions to empower over 20 million people from all wealth segments, including savings and retirement, affluent and high-net worth, to create wealth through long-term investment, aligned with things they care about the most, and on their own terms.
FNZ combines technology, infrastructure and investment operations in a single state-of-the-art platform that frees its institutional customers to create hyper-personalized and innovative products and services that are seamlessly aligned with the needs of their clients.
This investment reflects both CPP Investments’ and Motive’s confidence in FNZ’s business model and future growth prospects both geographically and through market consolidation. The capital raise will help FNZ further accelerate its growth through increased R&D, as well as driving growth in markets that FNZ have recently entered, in particular North America. CPP Investments is investing a total of US$1.1 billion.
Since its foundation in 2003 in New Zealand, FNZ has demonstrated exponential growth. In the last five years, it has grown assets under administration over seven-fold from US$212 billion to over US$1.5 trillion.
The company now partners with over 650 large financial institutions and over 8,000 wealth management firms in 21 countries including abrdn, Allianz, Aviva, Barclays, BNP Paribas Cardif, BNZ, Colonial First State, Generali, Jarden, Lloyds, Momentum, NAB, Quilter, Swedbank, UOB and Vanguard. This growth is set to continue as FNZ accelerates its market penetration, targeting a greater share of the c.US$100 trillion global wealth market.
The company has consistently attracted strong investment interest and CPP Investments and Motive Partners represent the fifth and sixth external shareholders in FNZ. In 2018, CDPQ and Generation Investment Management acquired a majority stake in the company, in a partnership built around long-term and sustainable investment. They were joined in 2021 by Temasek, enhancing FNZ’s reach into Asian markets. All investors remain long-term and committed shareholders, alongside more than 800 employee-shareholders. No investors will be selling any secondary shares in the transaction.
Lazard & Co. Limited acted as exclusive financial adviser, and Allen & Overy LLP acted as lead legal adviser, to FNZ in relation to the equity capital raise.