FNZ in deal worth billions

Generation and Caisse de Depot et Placement du Quebec had taken two-thirds of the wealth management services provider, from General Atlantic and HIG Capital.

The deal is the first investment to be made by a new partnership formed by Canada’s second-largest pension fund and the investment firm co-founded by former  US vice-president Gore and former Goldman Sachs Group partner David Blood. The duo plans to deploy US$3 billion initially for investments with an eight-to-15-year duration.

FNZ was founded in New Zealand in 2003 by its chief executive, Adrian Durham, and others.

"We started FNZ by asking: how can technology solve the problems faced by consumers of long-term savings products? We saw investors being charged so much that their retirement income was halved by charges alone. They were no better off than a bank deposit, despite taking risk and investing in managed funds for over 30 years. Choice was non-existent and the entire value chain was managed using paper," Durham said.