InvestCloud completes USD1bn recapitalisation and integrates two new businesses
Global fintech firm InvestCloud has completed a recapitalisation that values the business at USD1 billion.
New financial investors are led by Motive Partners (Motive) with Clearlake Capital Group (Clearlake) and include other InvestCloud client shareholders. Under the terms of the agreement, Motive Partners will also contribute two portfolio businesses, Finantix and Tegra118, into InvestCloud, creating a global Software-as-a-Service (SaaS) wealth solutions platform.
“The recapitalisation achieves our first objective,” says John Wise, InvestCloud’s Co-founder and Chief Executive Officer. “At a valuation of USD1 billion, we can reward early investors in the business, while injecting new capital to fuel the next stage of our growth, further supporting our clients' needs. Crucial to our ultimate objective – which is to build the world’s largest financial supermarket – is the partnership with Rob and the Motive team, Clearlake and the Tegra118 and Finantix businesses. Together with Cheryl, Christine and their exceptional teams, they enable us to accelerate our plans to build platforms serving the main markets in global wealth and asset management, each utilising the proven SaaS design principles, architecture and data models of the InvestCloud platform.
“Tegra118 has the largest integrated platform in the US, with fund sponsors (asset managers: nine of the top 12 in the USA) connecting to distributors (wealth managers: seven of the top 10 Broker Dealers in the USA) for financial products. Combining this with the Digital Platform of InvestCloud provides the best-in-class digital advice to Advisor Networks and Advisors. With our existing clients, InvestCloud will now build a worldwide financial supermarket using Tegra118 as the base. Finantix adds further strength in Europe and Asia – particularly in the private banking space – to fulfil our ambition to distribute the InvestCloud platform and our collective solutions globally.”
“Huge forces are impacting the wealth sector,” says Rob Heyvaert, Founder and Managing Partner, Motive Partners and Chairman of InvestCloud. “Whether it’s demographics, democratisation or disintermediation, the sector will change massively in years ahead. We believe the use of InvestCloud’s cloud technology and platform with our existing assets (Tegra118 and Finantix) will determine the winners. This investment, and the commitment of two of our existing businesses and their exceptional talent, creates a global wealth platform provider that has proven technology with the ability to scale and serve the needs of our global clients and their customers through existing, new and hyper-personalised solutions.”
"Wealth managers are faced with several operational complexities, including increased demand for tailored, diverse investment products as a result of the shift towards open banking," says Behdad Eghbali, Co-Founder and Managing Partner, and James Pade, Partner, of Clearlake. "We believe InvestCloud's leading software solutions, in combination with Finantix and Tegra118, uniquely position the company to address these trends and deliver significant value to its global customer base."
In addition to their established reputations, blue chip customer base and rich functional capabilities, the addition of the Finantix and Tegra118 businesses further establishes InvestCloud as a leader in the wealth and asset management marketplace. InvestCloud will now have in excess of USD4 trillion of assets on its platform and revenues over USD285 million, with a team of over 900 people and a truly global footprint, by adding locations and expert knowledge of continental European and Asian markets.
InvestCloud will now organise its business to serve clients through four distinct market opportunities for its unique and proven platform capability within the wealth and asset management arenas:
With over USF2 trillion AUM already, the InvestCloud wealth adviser platform will continue to build upon its success in North America, the UK, continental Europe and Asia.
Using the Finantix product as its core, InvestCloud will offer an international private banking platform using its proven technology.
Using the Tegra118 product (already USD2 trillion AUM), and its extensive network of existing distribution relationships with asset managers, broker-dealers and custodians, InvestCloud will continue to build an international financial supermarket to connect manufacturers (asset managers) to distributors (wealth managers).
Using the hyper-modular cloud platform, clients can truly design and build unique Intellectual Property (IP) using InvestCloud’s design-first methods and AI PWP (Programs Writing Programs) to create cloud solutions.
John Wise is Chief Executive Officer of InvestCloud, and Rob Heyvaert (Founder & Managing Partner, Motive Partners) is Chairman. Cheryl Nash of Tegra118 will become the CEO of the Financial Supermarket division and Christine Mar Ciriani of Finantix will become the CEO of the Private Banking division. Both will join the global InvestCloud management team reporting to John Wise.