FNZ valued at US$20 billion plus

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What started as a small start fintech firm in Wellington has turned into a global giant.

Monday, February 14th 2022, 10:08AM 2 Comments

The FNZ wealth management platform, has completed one of the largest ever primary capital raises in the wealth management sector raised US$1.4 billion.

The deal values FNZ at more than US$20 billion.

FNZ has secured US$1.4 billion in new equity funding from Canada Pension Plan Investment Board and Motive Partners to accelerate transformation in the global wealth industry.

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 company says in a statement.

"The capital raise will help FNZ further accelerate its growth through increased research and development, as well as driving growth in markets that FNZ have recently entered, in particular North America. 

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 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.

FNZ founder and group chief executive Adrian Durham said: "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.

"Our growth trajectory shows no signs of slowing down."

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