FNZ feathers its nest buying Hatch from Kiwi Wealth

Global wealth management platform FNZ is feathering its nest and has today acquired the online investment platform Hatch.

Monday, October 4th 2021, 10:04AM

Hatch co-founder Kristen Lunman.

Hatch is a direct-to-consumer (D2C) digital investment platform that provides New Zealanders access to the US share markets and was previously owned by Kiwi Wealth.

Hatch serves over 130,000 users and more than $2 billion has been transacted on the platform since it was founded in 2018.

FNZ New Zealand managing director James McDonnell says what Hatch has achieved in the three years since its inception with the support of Kiwi Wealth is admirable.

"The business has reached a logical point in its lifecycle to pursue ownership transition, and FNZ now has the capability and appetite to build on these foundations in order to achieve a step-change in their growth trajectory.

“We also believe this move is entirely consistent with the needs of FNZ’s existing customer base, as having exposure, insight and experience in this segment of the market allows FNZ to provide a more relevant proposition to its customers whilst also creating an attractive entry point for a more sophisticated offering,” McDonnell says.

Hatch users can manage their investments through its online platform, accessing market-leading brands that may not have been as easy or as affordable to access in the past.

FNZ was founded in Wellington in 2004 and partners with banks, insurers and asset managers around the world to jointly develop multi-channel wealth management solutions for millions of customers.

The acquisition provides FNZ with a strategic opportunity to gain exposure to the D2C sector in New Zealand and supports FNZ’s long-term plan of broadening its wealth management proposition.

The purchase agreement will see Hatch remain as an autonomous business unit within the wider FNZ Group, which will allow Hatch to retain and follow its entrepreneurial instincts as well as its culture of innovation, dynamism and collaboration.

Hatch co-founder and general manager Kristen Lunman says FNZ has the necessary backing to scale at the pace a high-growth start-up requires.

"Hatch was the first to bring Kiwis easy and affordable access to the US share markets and fractional investing.

“In the future, with FNZ’s support, we intend to offer our customers further options that put their money to work, provided by the same team and community they are familiar with.

"FNZ has the resource, appetite, and global footprint to take Hatch to the next level,” she says.

Kiwi Wealth acting chief executive Rhiannon McKinnon says the culture of innovation at Kiwi Wealth made Hatch possible, and Kiwi Wealth is proud to have incubated the Hatch platform and seen it grow into the popular online investment platform it is today.

"We recognise Hatch’s appetite for expansion following the success of the incubation period, and this new owner will enable it to reach its full potential in the global arena.

“The sale of Hatch will enable Kiwi Wealth to further invest and innovate in the advice space to help Kiwis make better financial decisions in the long term.”

Tags: FNZ Hatch kiwi wealth Rhiannon McKinnon