Fintech FNZ acquires YieldX, increases its US footprint
FNZ acquires YieldX in a deal that expands FNZ’s presence in the US and brings together two technology providers that cater to wealth management firms.
The companies did not disclose the terms of the agreement.
FNZ, which provides a technology platform used by many financial services, has expanded its global footprint since it was founded by Adrian Durham in 2003 in New Zealand. FNZ says it manages more than $1.5 trillion in client funds worldwide. It works with over 650 financial institutions and 8,000 wealth management firms, including Barclays
,
Santander and Vanguard.
In February, the company raised $1.4 billion and received a valuation of $20 billion.
Tom Chard, managing director of North America at FNZ, says the addition of YieldX, which offers fixed income portfolio management technology and direct indexing tools, will increase FNZ’s capabilities and its US footprint.
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YieldX, which has offices in Miami and New York, was founded by Adam Green and Steve Gross in 2019. Green will join FNZ as managing director of asset management, and Gross will join the firm as head of asset management strategy.
Green says YieldX’s goal is to give wealth managers customization at scale when identifying fixed income investments for their clients. The company also aims to improve the user experience. Green says YieldX hired former Spotify designers to build an intuitive interface. “It doesn’t look like your average old-fashioned trading system,” he says.
Green adds that YieldX was attracted to the deal with FNZ because of the opportunity to expand its reach and because the two firms have similar corporate cultures. “We see an insatiable demand for customized asset management solutions,” says Green.
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FNZ’s “technology is never delivered purely as a software package; it is provided in conjunction with our administrative capabilities,” says Chard. “So we take on all the operational, compliance risk of maintaining and operating a wealth management platform. It’s everything from prospecting, lead generation, account onboarding, portfolio management, reconciliation, transfers, etc. And we deliver the experience to the end user.”
Chard says that because of FNZ’s size, it can do these tasks more efficiently and more cheaply than a wealth management firm could do on its own. With the addition of YieldX, FNZ will have greater opportunities to help wealth managers deliver better, more personalized service to their clients, he adds.
Write to Andrew Welsch at [email protected]
