Wealth management platform FNZ has agreed to acquire US-based fintech company YieldX in a move to expedite the personalisation of wealth management solutions across the American market.
The financial terms of the acquisition were not revealed.
YieldX is engaged in providing fixed income portfolio management technology, direct indexing tools, and optimisation services.
FNZ’s acquisition of YieldX is expected to support financial institutions, advisors, and their clients through the integration of the former’s full-service, end-to-end platform with the digital infrastructure and technology solutions of the latter.
YieldX’ capabilities are expected to be combined into FNZ’s wealth platform, allowing customers to search fixed-income opportunities worldwide and to quickly find the outcomes that suit their desired terms and yield depending on their risk profile.
Established in 2019, YieldX delivers asset management solutions, custom investment universes, and white-labelled offerings for asset managers, home offices, and financial advisors.
YieldX co-founder and CEO Adam Green said: “The demand for digital, personalised fixed income solutions has skyrocketed over the last year as yields have risen. Pairing our capabilities with the world-class platform and team at FNZ will allow us to accelerate and scale the delivery of our solutions.
“I am very excited about the opportunity to join FNZ and work with such a dedicated team. The opportunity to leverage YieldX to support FNZ’s expansion is a perfect fit.”
Through the acquisition, FNZ expects to offer tailored investment solutions to more people across the wealth management sector.
FNZ is said to bring together technology, infrastructure, and investment operations into a unified platform to help global financial institutions to quickly supply personalised services and wealth products that are suited to the requirements of their customers.
FNZ North America CEO Tom Chard said: “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.”
“The acquisition also provides a unique opportunity to accelerate our growth and presence in the U.S. as we continue to add market leading capabilities to our global wealth platform.”
FNZ is claimed to manage over $1.5 trillion in client assets.
The firm is said to partner with over 650 large financial institutions and over 8,000 wealth management firms including Barclays, Envestnet, Colonial First State, abrdn, Generali, Santander, Lloyds Bank, and Vanguard.