FNZ numbers revealed

Price FNZ paid for Hatch revealed along with funds under administration numbers.

Monday, June 20th 2022, 7:58AM

by Jenni McManus

Accounts filed in the Companies Office reveal that investment platform FNZ Holdings (NZ) Ltd paid $40.1 million to acquire Hatch Invest from Kiwi Wealth in November last year.

The deal included $10.5 million of net assets and $29.5 million of goodwill.

Hatch, a direct-to-consumer digital investment platform that gives New Zealanders cheap and easy access to US listed shares and more than 50 ETFs, was launched in 2018 and since then has attracted more than 130,000 investors.

Rather than offering managed funds, Hatch users manage their own investments (in a similar way to Sharesies and Stake).

When the FNZ acquisition was announced (for an undisclosed price) last year, Hatch said it now had the back-end capability and global reach to upscale its business. For its part, FNZ said the Hatch purchase gave it direct entry into the New Zealand retail market.

FNZ provides backend systems for banks, insurers and asset managers globally. In the notes to its accounts last week, FNZ said it had the resources, appetite and global footprint “to take Hatch to the next level” and would prioritise expansion in the New Zealand market.

For the year ending 31 December 2021, assets under administration increased by $3.94 billion. Net profit for the year was $0.20 million, slightly down on the previous year’s $0.25million. FNZ attributes the flat result in part to significant investment in technology.

FNZ was founded in Wellington in the early 2000s. In 2005 it expanded to the UK, initially partnering with Standard Life Aberdeen and setting up shop in Edinburgh. It became the top technology platform by market share, with clients such as Barclays, Generali, HSBC, Lloyd’s Bank, Mercer and UBS.

On 2018 FNZ was acquired by a joint venture between Generation Investment Management, owned by former US vice president and environment activist Al Gore, and Canadian asset manager CDPQ. The deal was worth US$2.16 billion.

Tags: Hatch