The firm said the deal will help it to deliver "personalised investment solutions" to more clients.
FNZ, the global wealth management platform, continued where it left off in 2022 by announcing that it has agreed to acquire YieldX, a US-based provider of fixed income portfolio management technology, optimisation services and direct indexing tools for the wealth sector.
The financial terms of the acquisition have not been not disclosed.
The acquisition will add momentum to FNZ’s mission to deliver personalised investment solutions to more people across the wealth management industry.
“Financial institutions, advisors and their clients will benefit from the unique combination of FNZ’s full-service, end-to-end platform and YieldX’s digital infrastructure and technology solutions. These innovative capabilities, which will be integrated into FNZ’s wealth platform, enable clients to scan the universe of fixed-income opportunities globally, and quickly identify the outcomes that mirror their desired term and yield, based on their risk profile,” FNZ said in a statement late last week.
The business has been in acquisition mode recently. In July 2022 it acquired New Access, a specialised private banking technology firm primarily active in the markets of Switzerland, Liechtenstein and Luxembourg. In 2021 after FNZ agreed to buy Switzerland-based onboarding tech specialist Appway.
The deal also speaks to a continuing M&A trend in the North American wealth management sector. See this article here by US correspondent Charles Paikert for an analysis.
Founded by Adam Green and Steve Gross in 2019, YieldX is based in Miami and has an office in New York. It services clients from top-tier wealth and asset managers, to B2C financial services and technology providers operating across the globe.
Following the acquisition, Green will join FNZ as CEO of asset management, and Gross will join FNZ as head of asset management Strategy.
FNZ administers more than $1.5 trillion in client assets representing over 20 million investors worldwide. It partners with over 650 large financial institutions and 8,000 wealth management firms in 21 countries, including abrdn, Barclays, Colonial First State, Envestnet, Generali, Lloyds Bank, Santander, and Vanguard.
“We have a joint vision of opening up wealth by transforming the wealth management industry through more transparent, accessible, and personalised technology solutions. YieldX’s solutions perfectly complement our existing strengths and will further differentiate our offering for the benefit of all clients,” Tom Chard, CEO North America, FNZ, said.