Global wealth management platform FNZ will acquire YieldX, a fixed-income portfolio management fintech, according to an announcement yesterday.
Following the acquisition, YieldX co-founder Adam Green wiil join FNZ as CEO of asset management, while co-founder Steve Gross joins FNZ as head of asset management strategy.
“The demand for digital, personalized fixed income solutions has skyrocketed over the last year as yields have risen,” Green said in a prepared statement. “Pairing our capabilities with the world-class platform and team at FNZ will allow us to accelerate and scale the delivery of our solutions.”
With YieldX’s technology, FNZ will be able to offer more personalized investment solutions to more of the wealth management industry. YieldX offers wealth managers, asset managers, technology providers and other financial services firms digital infrastructure and technology solutions.
Those capabilities will be integrated into FNZ’s wealth management platform, enabling advisors to look across the global universe of fixed-income opportunities and identify outcomes that mirror their desired term and yield, based on a risk profile.
“We have a joint vision of opening up wealth by transforming the wealth management industry through more transparent, accessible, and personalized technology solutions,” said Tom Chard, FNZ CEO North America, in released comments. “YieldX’s solutions perfectly complement our existing strengths and will further differentiate our offering for the benefit of all clients.”
FNZ states that it currently serves 650 “large” financial institutions and 8,000 wealth management firms encompassing $1.5 trillion in client assets representing 20 million investors worldwide.
The acquisition makes sense in the context of trends of consolidation and enrichment of services within the fintech, asset management and wealth management spaces, said Nikhil Sharma, managing principal and U.S. head of digital wealth at Capco, in comments emailed to Financial Advisor magazine. Capco is a technology and operations consultancy focused in the financial services space.
“FNZ has had an expansive footprint within wealth management with front-to-back offerings on a single platform,” said Sharma. “Their recent acquisitions—including Appway and now YieldX—powered by a massive funding round in Feb 202, are in line with the consolidation M&A trends aimed towards offering depth of service in certain segments. In the YieldX case, it’s the specialization and expertise in fixed income portfolio management & direct indexing technology and their integration into wealth management.”