Caisse, Al Gore’s Generation buy two-thirds stake in FNZ in one of year’s largest fintech deals
The deal values the wealth-management services provider at $2.2 billion
Al Gore’s Generation Investment Management LLP and Canadian pension fund Caisse de Depot et Placement du Quebec teamed up to acquire control of wealth-management services provider FNZ in one of the year’s largest fintech deals.
The acquisition of a two-thirds stake held by the private equity firms General Atlantic and HIG Capital values FNZ at about 1.65 billion pounds (US$2.2 billion), according to a statement from the companies Tuesday that confirmed an earlier report by Bloomberg News.
The deal is the first investment to be made by a new partnership formed by Canada’s second-largest pension fund and the investment firm co-founded by former U.S. Vice President Gore and former Goldman Sachs Group Inc. partner David Blood. The duo plan to deploy US$3 billion initially for investments with an 8- to 15-year duration, taking a longer view than the typical private equity deal.
The FNZ agreement adds to a surge in fintech transactions, which totaled more than US$39 billion in the first half amid investments in payment processing, financial data and machine learning, according to a report from advisory firm Hampleton Partners.
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