Wealthtech FNZ secures investment from Temasek, acquires IPSI
FNZ Group, a Platform-as-a-Service provider to the wealth management industry, has landed an investment from Temasek, a Singaporean investment company.
FNZ hopes to benefit from Temasek’s “significant presence and experience in Asia as it looks to grow its business in the region over the coming years”.
Temasek joins existing investors Caisse de dépôt et placement du Québec (CDPQ) and Generation Investment Management LLP, who acquired a majority stake in FNZ in October 2018, in a deal that valued the company at nearly £1.7 billion. FNZ says this was the first investment from the CDPQ-Generation partnership, “who came together to make large-scale, long-term sustainable investments”.
The investment from Temasek have enabled FNZ to acquire a Dublin-based third-party administration (TPA) solutions provider, Irish Progressive Services International (IPSI), from Irish Life.
IPSI offers end-to-end TPA solutions for support services for the life insurance and pensions industry. It was founded in 1998. It employs 250+ people and services €30+ billion in assets under administration (AUA).
Adrian Durham, co-founder and chief executive of FNZ Group, praises the IPSI team for doing “a fantastic job of developing a sophisticated proposition and cultivating a strong, long-term client base” and emphasises FNZ’s commitment to investing in IPSI.
The acquisition is subject to regulatory approvals.
FNZ provides technology, transaction and custody services to financial institutions, “transforming the way financial institutions serve their wealth management customers”. It works with banks, insurers and asset managers.
The company was founded in 2004 in Wellington, New Zealand. Today, it is responsible for over £400 billion in AUA held by around eight million customers, including those of Aviva, Barclays, BNZ, Findex, Generali, Lloyds Banking Group, National Australia Bank, Quilter, Santander, Standard Life Aberdeen, Swedbank, UBS, UOB, Vanguard and Zurich.
In total, FNZ works with over 60 financial institutions globally and employs over 2,500 in Australia, China, Czech Republic, Germany, New Zealand, Singapore, the Nordics and the UK.