FNZ has bought a stake in boutique advice firm, Pāua Wealth Management, in a new move for the investment platform provider.
Donna Nicolof, Pāua co-founder, said in a note last week that the FNZ equity injection would fuel growth ambitions for the Auckland-based advisory business including potential acquisition targets.
“Pāua will benefit from access to capital to not only attract the best people but support acquisition opportunities and expand our global network,” Nicolof said. “This is an exciting time in our journey, given the growing number of people seeking independent financial advice as they sell businesses or transition to the next generation.”
Founded in 2020 by the former BNZ private bank head, Pāua uses FNZ for custodial platform services but the note says “FNZ’s investment will not change Pāua’s employee-controlled independent model”.
“Pāua’s decision to use FNZ for custodian services continues to be at the sole discretion of Pāua,” a joint statement from the two firms says. “Pāua not only has a custody agreement in place but agreed service levels that FNZ are required to meet, similar to any other supplier arrangement. Pāua remains committed to delivering independent financial advice free from the conflicts of interest that come from commission-based incentive structures and vertically integrated businesses.”
Targeting wholesale clients such as family office and not-for-profits, Pāua has four advisers catering to an expanding client base that has seen funds under management grow “exponentially, particularly this past year”, the statement says.
Nicolof said the business partnered with FNZ on the back of a shared “vision” as well as the platform provider’s global connections and “commitment to reinvesting in leading edge technology, which will continue to deliver greater functionality to our clients”.
FNZ won’t have a seat on the Pāua board nor any involvement in the day-to-day management of the advisory business.
However, the equity deal is unique for the global investment platform giant, which “does not have a stake in any other advice firms”.
The now London-headquartered business has been highly acquisitive over the last couple of years, though, taking a share in or buying outright a raft of new bolt-on technology and distribution businesses.
Over 2022 alone, FNZ has announced more than a dozen purchases or equity partnerships across sectors including client onboarding, wealth management and private banking technology, and insurance platforms.
In February this year the company, headed by Adrian Durham, secured US$1.4 billion in new funding from shareholders CPP Investments and Motive Partners, valuing FNZ at US$20 billion.
Globally, the platform administers over US$1.5 trillion on behalf of 650 financial institutions and 8,000 wealth management businesses that collectively service more than 20 million individual clients.