InvestCloud, an award winning global FinTech firm has completed a recapitalization that values the business at $1 billion. New financial investors are led by Motive Partners (“Motive”) with Clearlake Capital Group, L.P. (“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.
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“The recapitalization achieves our first objective,” said John Wise, InvestCloud’s Co-founder and Chief Executive Officer. “At a valuation of $1 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 utilizing the proven SaaS design principles, architecture and data models of the InvestCloud platform.”
John Wise continues, “Tegra118 has the largest integrated platform in the US, with fund sponsors (asset managers: 9 of the top 12 in the USA) connecting to distributors (wealth managers: 7 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 fulfill our ambition to distribute the InvestCloud platform and our collective solutions globally.”
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“Huge forces are impacting the wealth sector,” said Rob Heyvaert, Founder and Managing Partner, Motive Partners and Chairman of InvestCloud. “Whether it’s demographics, democratization 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-personalized 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,” said 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.”
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