FNZ has tapped existing institutional shareholders for a further US$0.5 billion following a US$1 billion capital-raise and more than US$2 billion of debt restructure last year.
In a release, the global financial technology firm established in NZ says the significant capital top-up would “provide financial strength to support FNZ’s long-term business plan”.
The company attracted a combined US$1.4 billion from new shareholders CPP Investments and Motive Partners in 2022 at a valuation of US$20 billion.
According to a FNZ spokesperson, there was “no valuation attached” to the most recent deal.
Last year, the loss-making firm renegotiated the terms of about US$2.1 billion in debt, pushing out the maturity of loans due over 2025/26 to 2031. The group also borrowed a further US$319 million from shareholders due for repayment in 2031.
At the same time, FNZ embarked on an executive shake-up with founder, Adrian Durham, handing CEO duties over to Blythe Masters.
Durham remains on the board and as a ‘special adviser’ to the business.
Subsequently, FNZ has made a string of senior appointments, most recently naming Anthony Habis as Asia-Pacific group head.
The business, now officially domiciled in NZ, reported a loss of about US$555 million for the 2023 calendar year but was on track to make “break-even on a go-forwards basis during 2025”, the accounts note.
Founded in Wellington under the auspices of First NZ Capital (now Jarden), Durham grew FNZ into a global financial technology powerhouse.
In 2018, the company saw the Canadian pension scheme, Caisse de Depot et Placement du Quebec (CPDQ), and the Al Gore-run Generation Investment Management collectively spend almost NZ$2.3 billion to buy two-thirds of FNZ at a then-valuation of NZ$3.45 billion.
The firm has brought on other shareholders since including CPP, Motive (where Masters was a principal) and the Singapore sovereign wealth fund, Temasek, amid a splurge of corporate buy-outs across Europe and the US.
CPDQ owns about 45 per cent of FNZ, according to the pension fund’s 2023 accounts.
Masters said in a statement: “We are focused on enhancing long-term value for all of our stakeholders and inspiring trust as we execute on our refreshed strategy. The transformation of global wealth management is only just beginning and I’m passionate about FNZ’s role in empowering people to save and invest for the future.
Gregor Stewart, said in the release the latest capital-raise represented an “endorsement” of the FNZ growth plan.
“I would like to thank our long-standing institutional shareholders for their continued support and partnership, and their renewed commitment to FNZ’s success,” Stewart said.
FNZ reported about US$1.7 trillion in funds under administration across more than 650 financial institutions, 12,000 wealth managers and over 24 million end-users.