Private equity firms Motive Partners and Clearlake Capital, along with funds advised by Motive Partners, have agreed to purchase an 80% stake in wealth platform InvestCloud.
Financial details of the transaction, which saw co-investment from Accenture, Citi Ventures and Fiserv, are unknown.
Concurrent with the deal, Motive Partners and Clearlake have combined InvestCloud with existing Motive Partners portfolio firms Finantix and Tegra118 to launch a Software-as-a-Service (SaaS) wealth solutions platform.
The combined company will operate as InvestCloud, led by InvestCloud CEO John Wise.
InvestCloud is a modular, enterprise-grade digital wealth and investment management software solutions platform.
While Tegra118 was identified as a complementary platform fit to the platform, Finantix was selected as an ideal partner for private banking capabilities.
Moreover, Finantix’s strong foothold in private banking space in the Europe and Asian region is said to offer a strong base for international expansion of the InvestCloud.
The merged platform will have over 500 direct clients, including more than 380 wealth managers and over 120 asset managers and indirect clients who use the platform to manage over $4trn of assets around the world.
Commenting on the development, Wise said: “We are delighted with the opportunity to combine the strengths of Tegra118 as the leading Managed Account platform in the USA, and Finantix Private Banking expertise with InvestCloud’s leading digital wealth platform.
“The timing represents a once-in-a-lifetime opportunity to work with fellow entrepreneur Rob Heyvaert, the broader Motive Partners team and Clearlake to seize the opportunity to transform the industry.”
As part of the deal, Motive Partners founder and managing partner Rob Heyvaert will become InvestCloud chairman, while Tegra118 CEO Cheryl Nash and Finantix CEO Christine Ciriani will report to Wise.
In addition, Clearlake managing director and partner James Pade and vice-president Vikram Abraham and Fiserv executive vice-president of Corporate Development James Cox will join the board of InvestCloud.
They will be supported by Motive Partners founding partner Scott Kauffman and industry partners Richard Lumb and Doug Smith.
The latest investment propels InvestCloud to the unicorn club, with a valuation of $1bn.
Wise said: “At a valuation of $1bn, 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.”
He added: “Crucial to our ultimate objective – which is to build the world’s largest financial supermarket – is the partnership with Rob and the Motive team, Clearlake and the Tegra118 and Finantix businesses.”
Last September, US-based wealth manager Oppenheimer entered into a strategic alliance with InvestCloud to ramp up the buildout of its digital experience platform.