Tech company valued at £15bn in Europe’s biggest capital-growth deal
A tech company that powers the websites of some of the world’s biggest fund managers has tapped London-based investors for £1billion in Europe’s biggest private capital growth deal.
FNZ is building retail investor websites for Aviva and Vanguard as they battle the dominance of supermarket funds such as Hargreaves Lansdown and AJ Bell.
Friday’s investment, from the London-based divisions of Canadian Pension Plan Investments and private equity firm Motive Partners, values the business at £15 billion, the equivalent of 20 years of current sales.
Only Revolut, whose last funding round valued the company at 25 times annual revenue. Deal insiders said the valuation partly reflected how much so-called dry powder — money waiting to be invested — was on the books of private equity firms.
Globally, approximately $2.1 trillion is on the sidelines and ready to deploy. The sought-after private companies thus become the target of bidding wars.
FNZ was launched in Wellington, New Zealand and has grown rapidly over the past five years, with assets under administration growing from $212 billion to $1.5 trillion.
It now powers the websites of over 8,000 wealth management companies in 21 countries. Lazard advised the company in its fundraising.
Hargreaves Lansdown was established in 1981 by Peter Hargreaves and Stephen Lansdown.
The FTSE 100 company has grown rapidly and has taken advantage of the growth of the internet to become the UK’s largest cash supermarket. It earns its money through a series of fees, some of which are borne by the fund manager.
Adrian Durham, Founder of ANZ, said: “Our growth trajectory shows no signs of slowing down.”