Motive Partners (“Motive”), a specialist private equity firm focused on growth and buyout investments in enterprise financial services software companies, and Clearlake Capital Group, L.P. (“Clearlake”), a sector-focused investor that partners with world-class management teams by providing patient, long-term capital to dynamic businesses, today announced that they have acquired InvestCloud, a modular, enterprise-grade digital wealth & investment management software solutions platform.
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Motive Partners, Clearlake and funds advised by Motive Partners have entered into a definitive agreement to acquire 80% of InvestCloud from early stage Investors, and have simultaneously combined InvestCloud with existing Motive Partners portfolio companies Finantix and Tegra118 to create the next generation Software-as-a-Service (“SaaS”) global wealth solutions platform led by InvestCloud’s CEO, John Wise. The strategy and vision is shared by an esteemed group of co-investors, made up of some of the largest financial institutions in the world, including Accenture, Citi Ventures and Fiserv.
The wealth management industry is exhibiting consistent growth and investment from new and established providers, presenting opportunities for disruptive technology companies to digitize the industry and capture market share along the value chain. Today software solutions are often legacy and purpose-built, with many point solutions fragmented by geography, process and category. However, industry trends include the need to serve global clients consistently, digitize advisor and client interactions, create efficiency in front to back office processes, and provide integrated solutions which can span all wealth segments including mass affluent, high net-worth and ultra high net-worth needs.
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InvestCloud’s platform has been selected by many of the world’s largest financial institutions, private banks and Insurers as their global digital wealth platform. Motive and Clearlake, working with InvestCloud, identified that Tegra118 would be a complementary fit as the base for future product innovations, and Finantix would be the ideal partner for private banking capabilities.
In addition, Finantix’s focus on private banking in Europe and Asia provides a strong base for InvestCloud’s international expansion. The combined company has over 500 direct clients, including 380+ wealth managers (distributors: 7 of the top 10 Broker Dealers in the USA) and 120+ asset managers (manufacturers: 9 of the top 12 in the USA), with hundreds more indirect clients that manage over $4 trillion of assets around the world using the platform. The combined company, which will operate as InvestCloud, benefits from a blue-chip client base, superior modern technology and substantial industry tailwinds.
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