Global investment firm Carlyle has confirmed its acquisition of intelliflo from Invesco.
intelliflo provides cloud-based practice management solutions to financial advice firms, supporting over 30,000 users across the UK and internationally.
The transaction includes intelliflo’s US-based subsidiaries, including RedBlack, a provider of SaaS-based portfolio rebalancing tools, and intelliflo Portfolio, a portfolio management software solution for US registered investment advisers (RIAs).
The purchase price of up to $200 million is comprised of $135 million at closing, which is expected in the fourth quarter of this year subject to certain closing conditions, and up to an additional $65 million in potential future earn outs.
Founded in 2004 and headquartered in London, intelliflo offers an end-to-end software platform used by approximately 2,600 advisory firms, supporting the management of approximately £450 billion in client assets. intelliflo’s platform delivers CRM, financial planning, client onboarding, compliance workflows, and reporting functionality. Its cloud-native SaaS architecture integrates with over 120 third-party applications. The transaction aims to strengthen intelliflo’s position in the UK and accelerate its growth in Australia.
As part of the transaction, intelliflo’s US-based subsidiaries will be established as a standalone business called RedBlack, run by a separate management team. intelliflo will focus purely on delivering software and innovation for the UK and Australian markets, and RedBlack will focus solely on delivering for RIAs and other financial advisers in the United States. Carlyle will support the carve-out of both businesses from Invesco and partner with both leadership teams to execute their respective growth initiatives.
Fernando Chueca, managing director in the Carlyle Europe Technology Partners investment advisory team, said: “intelliflo is a mission-critical software provider to the UK’s wealth management ecosystem, with a deeply embedded and loyal customer base. We are excited to partner with Nick, Bryan, and the team to unlock the company’s full potential and deliver a new stage of growth.”
Nick Eatock (pictured), CEO and founder of intelliflo, commented: “This is an exciting moment for intelliflo. Carlyle’s investment reflects its trust in our business and its deep experience in scaling software companies make it an ideal partner for our next phase of growth. With Carlyle’s support, we will continue to focus on delivering great value to our clients, with a renewed focus on building innovative solutions for the evolving needs of our core UK and Australian customer bases.”
Ian McKenna, founder of Financial Technology Research Centre and AdviserSoftware.com, added: “This is a good deal for intelliflo customers and the business itself. It provides them with the right sort of backers to take the business forward at what is undoubtedly the most transformational time since the dawn of AdviceTech.
“The UK is one of the most sophisticated financial advice markets in the world, so it is hardly surprising that there has been significant activity over the last year. Three weeks ago, Iress, intelliflo’s main competitor in the UK and Australian markets, announced it is in talks with potential acquirers.
"Against this background, despite wider economic pressures the market for advice tech firms is buoyant and intelliflo must be seen as golden opportunity.
“Importantly, the new ownership positions the business well for further acquisitions if they are the right way to go."
