Tech company valued at £15bn in Europe's biggest capital growth deal

FNZ builds retail investor websites for the likes of Aviva and Vanguard as they fight back against the dominance of fund supermarkets such as Hargreaves Lansdown and AJ Bell.

A tech company powering the websites of some of the world’s biggest fund managers has tapped London-based investors for £1bn in Europe’s biggest private capital growth deal.

FNZ builds retail investor websites for the likes of Aviva and Vanguard as they fight back against the dominance of fund supermarkets such as Hargreaves Lansdown and AJ Bell.

Friday’s investment, from the London-based divisions of Canadian Pension Plan Investments and private equity firm Motive Partners, values the business at £15bn – equal to 20 years of current sales.

This is pipped only by Revolut, whose most recent funding round valued the business at 25 times annual revenue. Deal insiders said that the valuation was in part testimony to the amount of so-called dry powder – money waiting to be invested – sat on the books of private equity firms.

Globally, an estimated $2.1 trillion is on the sidelines and ready to deploy. Sought-after private companies become the target of bidding wars as a result.

FNZ was launched in Wellington, New Zealand, and has grown rapidly in the last five years with assets under administration growing from $212bn to $1.5 trillion.

It now powers websites for more than 8,000 wealth management firms across 21 countries. Lazard advised the company on its fundraising.

Hargreaves Lansdown was created in 1981 by Peter Hargreaves and Stephen Lansdown.

The FTSE 100 company expanded quickly and took advantage of the growth of the internet to become the UK’s biggest fund supermarket. It makes its money through a series of charges, some of which are borne by the fund manager.

Adrian Durham, founder of ANZ said: “Our growth trajectory shows no signs of slowing down.”