Wealth solutions platform InvestCloud announced it is now valued at $1 billion, making it a new fintech unicorn. The new valuation comes after the fintech restructured its debt and equity in a recapitalization.
“At a valuation of $1 billion, we can reward early investors in the business, while injecting new capital to fuel the next stage of our growth, further supporting our clients’ needs,” said InvestCloud Co-Founder and CEO John Wise.
Comprising a major portion of the recapitalization, Motive Partners, Clearlake Capital Group, and other InvestCloud client shareholders have agreed to acquire 80% of InvestCloud. As part of the deal, Motive Partners will contribute two portfolio businesses into the firm. The first is Finantix, which it acquired in 2018, and the second is Tegra118, which is a newly-formed company resulting from Motive’s acquisition of Fiserv’s Investment Services business.
InvestCloud expects the addition of Finantix and Tegra118 to solidify its presence in the wealth and asset management marketplace. After the restructuring, InvestCloud will have $4+ trillion in assets on its platform and revenues over $285 million, with a team of over 900 people. Moreover, Finantix and Tegra118 will boost InvestCloud’s presence in and knowledge of continental European and Asian markets.
“Together with Cheryl [Nash of Tegra118] and Christine [Mar Ciriani of Finantix] and their exceptional teams, they enable us to accelerate our plans to build platforms serving the main markets in global wealth and asset management, each utilizing the proven SaaS design principles, architecture and data models of the InvestCloud platform,” added Wise.
InvestCloud will use the expertise at Finantix and Tegra118 to offer four staple platforms and a marketplace:
- Wealth Advisor Platform – With its existing skillset, InvestCloud will build upon its background in North America, the U.K., continental Europe, and Asia.
- Private Banking Platform – Leveraging Finantix, InvestCloud will offer an international private banking platform.
- Custom Financial Platform – Using InvestCloud’s design-first methods and AI Programs Writing Programs, clients can build unique intellectual property to create cloud solutions.
- Financial Supermarket – Using the Tegra118 product, InvestCloud will build an international financial supermarket to connect asset managers to wealth managers.
Logistically, John Wise will remain CEO of InvestCloud, while Rob Heyvaert will continue as Chairman. Tegra118’s Cheryl Nash will become the CEO of InvestCloud’s Financial Supermarket division and Finantix’s Christine Mar Ciriani will become the CEO of the Private Banking division.
InvestCloud was founded in California in 2010. The company has raised $54 million from investors including JP Morgan Chase and FTV Capital.