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FNZ to be worth GBP 1.7bn following CDPQ and Generation purchase
Posted on Tuesday, 09 October 2018 11:36
La Caisse de dépôt et placement du Québec (CDPQ) and Generation Investment Management have agreed to acquire the stake owned by General Atlantic and HIG Capital in New Zealand wealth manager FNZ.
The two buyers today announced a newly-created sustainable equity partnership and the purchase of the UK-headquartered and New Zealand-operated firm will be the first investment by the consortium.
General Atlantic and HIG Capital control about two-thirds of FNZ, which is valued at GBP 1.65 billion in the transaction.
The deal is said to be one of the largest financial-technology (FinTech) acquisitions announced this year.
News comes a day after Bloomberg reported on the then potential purchase, citing sources as saying HIG is selling its stake for about GBP 450.00 million after injecting less than GBP 10.00 million in FNZ’s equity.
FNZ is a global FinTech company that partners with banks, insurers and asset managers to help consumers better achieve financial goals.
The group has about GBP 330.00 billion in assets under administration held by about 5.00 million customers, including some of the world’s largest financial institutions, such as Standard Aberdeen, Santander, Lloyds Bank, Vanguard, Generali and Barclays.
Founded in 2003, FNZ is billed as New Zealand’s leading investment bank and wealth manager.
The company partnered with HIG in a management buyout in 2009, with General Atlantic providing additional investment in 2012.
Generation is an investment firm co-founded by former US Vice President Al Core and Goldman Sachs partner David Blood, while CDPQ is Canada’s second-largest pension fund.
Together, the two companies plan to deploy USD 3.00 billion initially for investments with an 8- to 15-year duration, a longer commitment than usual for private equity purchases.
In July, Sky News reported FNZ was working on a potential sale of a controlling interest that could value the group at around GBP 2.00 billion.
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