The business said the deal will add to its objective of delivering "personalized investment solutions to more people across the wealth management industry."
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, optimization services and direct indexing tools for the wealth sector.
The acquisition, the financial terms of which were not disclosed, will add momentum to FNZ’s mission to deliver personalized investment solutions to more people across the wealth management industry, FNZ said in a statement late last week.
“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.
The business has been in acquisition mode recently. In July 2022 it acquired New Access, a specialized private banking technology firm primarily active in the markets of Switzerland, Liechtenstein and Luxembourg. In 2021, 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 personalized 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.