Wealth tech FNZ has joined forces with asset manager State Street to launch a new wealth manager servicing venture.
As part of the partnership, FNZ will pick a majority holding in the Wealth Manager Services business of State Street.
State Street will hold a minority stake.
Furthermore, financial details regarding the deal were not revealed.
The deal awaits regulatory nod, with completion anticipated in the final quarter of this year.
FNZ Group CEO Adrian Durham said: “This is the first step in a long-term strategy to expand our platform into the North American market.
“In the US, we see similar long-term drivers in relation to cost, transparency, digitisation and personalisation in asset and wealth management as other markets in which we operate.”
The new venture will integrate State Street’s custody capabilities with FNZ’s international platform that caters to nearly 8,000 wealth management and financial advice firms across the UK, Europe and Asia-Pacific.
State Street will be the sub custodian to the custody assets of Wealth Manager Services clients.
State Street senior vice president Lee Jones will lead the new venture as CEO.
Jones noted: “We will benefit from a significant investment in technology and people in order to expedite our growth strategy, and we are excited about the future.”
FNZ administers over $700bn in assets in 14 international markets across UK, Europe and Asia-Pacific. It has staff headcount of nearly 3,000.
Earlier this year, the firm secured an undisclosed infusion from Singaporean investment firm Temasek.
Meanwhile, State Street managed $2.69trn in assets under management at the end of March 2020.
The firm has employee strength of around 39,000.