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Industry Spotlight > Mergers and Acquisitions

U.K. Private Equity Firm Buying Riskalyze

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What You Need to Know

  • Riskalyze CEO Aaron Klein will continue to lead the company he founded and serve on its board.
  • The transaction is expected to close by the end of September.

U.K. private equity company Hg has signed a definitive agreement to acquire a majority stake in Riskalyze.

Riskalyze CEO Aaron Klein will continue to lead the firm he founded as part of the deal, the terms of which were not disclosed. He will reinvest the majority of his holdings into the recapitalized firm and continue to serve as CEO and a member of the board of directors.

The transaction is subject to customary closing conditions and regulatory approvals and is expected to close before Sept. 30, the companies said.

Hg’s Sebastien Briens, Max Dewez and Richard Earnshaw will join the Riskalyze board after the deal closes. Additional board appointments are expected to be announced in the “near future,” the firms said.

Riskalyze’s client and portfolio risk technology platform supports tens of thousands of financial advisors who use it to manage millions of client accounts with over $400 billion in assets.

The transaction represents a “major inflection point for the fast-growing” Riskalyze, “enabling the business to continue to invest in its strategy to serve the advisor desktop, providing risk, portfolio analytics, proposal, trading and compliance solutions to advisors and wealth management enterprises,” the firms said in a statement.

According to Riskalyze, it has added thousands of advisors to the platform in the past 12 months alone and has signed clients including Atria Wealth, Boston Private, Cetera, Grove Point, Hightower and Private Advisor Group.

Riskalyze has “found the perfect partner to write this next chapter of our story,” Klein said in a statement. “When we set out on this journey a decade ago, we quickly came to realize that we weren’t just building a company, but a movement — and the tens of thousands of advisors who comprise the Fearless Investing Movement took a big step forward today into a future of innovation and growth.”

“For Hg, the deal represents the opportunity to support a leading” Software-as-a-Service (SaaS) platform to build and scale a strong wealth management technology business in the U.S., the companies noted.

Hg has invested in more than 10 fintech firms in about five years and has invested over $1 billion in the sector to date.