Wealth management firm FNZ raises $1.4bn from CPP and Motive Partners

FNZ, a New Zealand-based wealth management platform, has raised $1.4 billion in new equity funding from Canada Pension Plan Investment Board (CPP Investments) and Motive Partners.

Through the new fundraising round, the Kiwi financial services company has taken its valuation to more than $20 billion.

Currently, FNZ is said to work with more than 650 financial institutions to help 20 million plus people in generating wealth via long-term investment.

The Kiwi wealth management platform said that the capital raise will enable it to further expedite its growth through greater research and development (R&D) in addition to fuelling an expansion in markets where it has forayed recently, especially in North America.

CPP Investments, on its own, is investing $1.1 billion.

Hafiz Lalani — CPP Investments Managing Director, Head of Europe, Direct Private Equity, said: “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.

Founded in 2003, FNZ also has partnerships with more than 8,000 wealth management firms such as abrdn, BNP Paribas Cardif, Allianz, Aviva, Barclays, BNZ, Lloyds, Momentum, Generali, Colonial First State, Jarden, NAB, Quilter, Swedbank, Vanguard, and UOB.

FNZ’s assets under administration over the last five years are said to have grown seven-fold from $212 billion to more than $1.5 trillion.

Adrian Durham — Founder and Group CEO of FNZ said: “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, and we are delighted to welcome CPP Investments and Motive Partners to FNZ and look forward to working with them as we further invest in and enhance our core platform, delivering substantial incremental benefits to our customers and their clients.”