Motive Partners buys control of LPA


Motive Partners said Nov. 12 that it acquired a controlling stake in LPA. Financial terms weren’t announced. LPA, of Frankfurt, Germany, provides software and advisory services focused on financial services distribution and regulatory compliance solutions. Ernst & Young LLP, Proskauer Rose LLP and Skye Partners served as Motive Partners’ advisers in connection with the transaction. Ludwig & Co and Watson Farley & Williams served as LPA’s legal adviser.

PRESS RELEASE

NEW YORK, LONDON and FRANKFURT, Germany, November 12, 2018 /PRNewswire/ —
• Lucht Probst Associates GmbH (“LPA”) is a leading provider of innovative software and advisory services focused on financial services distribution and regulatory compliance solutions
Motive Partners, a global private equity firm focused on growth investing, today announced that it has acquired a controlling interest in LPA. Motive Partners will support LPA and its founders in accelerating the company’s growth, including product development, international expansion and strategic hiring.
Headquartered in Frankfurt, Germany, and founded in 1999, LPA is a financial technology solutions provider with a focus on capital markets and wealth management participants. LPA offers a broad suite of software to optimize processes and enable regulatory compliance, as well as providing strategic advice and implementation services. The announced transaction follows strong financial results at LPA, with the company having experienced significant revenue and profitability growth in recent years.
LPA’s core products are a suite of technology solutions enabling automated advice (LPA Digital Client Interaction), distribution (LPA Captano) and documentation (LPA Doc) for financial instruments, particularly structured products and OTC derivatives. LPA offers a market leading solution that allows banks to efficiently comply with regulation under MiFID II, PRIIPs and FIDLEG requirements relating to the Key Investor Information Document (KIID) which is a document that contains the essential information relating to a financial product, including financial terms, risks and past performance data for retail investors.
LPA has grown in recent years to nearly 200 specialists in 4 cities, with significant further talent expansion planned as LPA and Motive Partners capitalize on the international opportunity. Initial geographies targeted for expansion include Asia-Pacific, the United Kingdom and the United States, where Motive Partners’ deep network and experience can catalyze growth. Other significant opportunities for value creation include product and service expansion into adjacent sub-sectors of the financial services industry.
Stefan Lucht, Co-founder of LPA, commented: “In Motive Partners we have found a firm that understands where we are coming from and our opportunity to accelerate the growth of the business. After months of searching we have found a strategic partner that will help us execute our shared vision.”
Roland Probst, Co-founder of LPA, added: “Motive Partners’ global presence, extensive network and the capabilities of Motive Labs will help us become a global leader in regulatory technology.”
Motive Labs, the operational and technology value creation team of Motive Partners, will work in conjunction with LPA and its executives to help strengthen its operations, to implement and to execute its value creation plan.
Rob Heyvaert, Managing Partner of Motive Partners, commented: “Our team at Motive Partners has deep expertise in regulatory technology. Given our thesis on the regulatory technology space, we have spent significant time searching for an investment opportunity that combines talent and technology capability with significant growth prospects. LPA squarely matches our objectives and we look forward to leveraging our capabilities to continue growing the firm with Stefan, Roland and the senior management team.”
LPA’s founders, Stefan Lucht and Roland Probst, and the management team will continue with the company to achieve its shared goals and to ensure high service quality to all existing clients. The founders will remain shareholders and Managing Directors of LPA. Peter Schurau, an Industry Partner at Motive Partners, will join LPA’s management team to assist with the growth initiatives.
Peter Schurau, Industry Partner at Motive Partners and former Chief Executive Officer of Capco Europe, commented: “The Motive team and I are very enthusiastic about the unique potential this partnership represents—it is not every day that you find such a well-matched culture and complimentary capabilities between an existing and highly talented management team and the investment firm. The opportunity to develop and deepen the software-focused value proposition for existing clients and to extend our reach into adjacent sectors is extremely exciting.  It is our collective objective to build and evolve LPA in to a company of global scale that is recognized as a leading RegTech brand. I look forward to working very closely with Roland and Stefan to make it a reality.”
Ernst & Young LLP, Proskauer Rose LLP and Skye Partners served as Motive Partners’ advisors in connection with the transaction.  Ludwig & Co and Watson Farley & Williams served as LPA’s legal advisor in connection with the transaction.
About Lucht Probst Associates
Lucht Probst Associates (LPA) is a financial services provider with a focus on capital market activities, offering strategic advice, management and implementation services as well as a broad suite of software to optimize processes and regulatory compliance.  Since 1999 LPA have focused on the global financial services industry and the firm’s 180 employees combine high value consulting, professional services, produce and implement bespoke and standard software applications.  With office locations in Frankfurt, Leipzig, Madrid, Barcelona and Singapore LPA are capable to meet clients’ requirements internationally.
About Motive Partners
Motive Partners is a sector specialist investment firm that is focused on technology enabled companies that power the financial services industry. Based in New York and London and comprised of investors, operators and innovators, Motive Partners brings differentiated expertise, connectivity and capabilities to create long-term value in financial technology companies.
More information on Motive Partners can be found at http://www.motivepartners.com.

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