The New York-based private equity firm will lead a team of investors that will spend $16 million to support the wealth management technology and solutions firm. ABS Capital’s Cal Wheaton and Don Hebb will join the FolioDynamix’s board of directors as part of the deal. The late-stage growth investor concentrates on business services, healthcare, media and tech companies.
NEW YORK, NEW YORK – December 21, 2010 – FolioDynamix, a leading provider of on-demand technology and product solutions to wealth management firms and their affiliated investment advisors, announced today a $16 million investment led by growth equity firm ABS Capital Partners. FolioDynamix will use the funds to extend the breadth of their technology platform and invest in sales and marketing, allowing them to continue to capitalize on their position as a sophisticated solution for wealth management sponsor firms of all sizes and their affiliated financial advisors. As a result of the financing, ABS Capital General Partner Cal Wheaton and Chairman and Founding Partner Don Hebb will join the company’s board of directors.
“This investment is a clear indication of how we’re changing wealth management,” said FolioDynamix CEO Joseph Mrak. “Firms and their clients demand a flexible and trustworthy solution to adapt to the needs of an account throughout its lifecycle. Our solution allows our client’s advisors to spend more time working with their clients and growing assets, not tinkering with software.”
FolioDynamix offers both a technology platform and advisory services. FDx SingleSight, the company’s wealth servicing platform, is a customizable turn-key asset management program that can be delivered in a bundled or unbundled manner, allowing the company to address the specific needs of the end customer without unnecessary additional costs or limits on flexibility. FDx Advisors, a registered investment advisor, has daily oversight of more than $13.6 billion in assets and offers institutional quality third-party manager research and access, custom investment program development, and discretionary investment solutions. Customers choose technology and advisory services in any combination, allowing them to focus on their clients’ growing and changing needs. FolioDynamix has over 4.5 million accounts utilizing aspects of its total platform.
“We heard again and again from FolioDynamix’ clients how much they valued the management team’s industry knowledge and the flexibility that the company offers in its products,” said Wheaton. “We believe our success in the technology sector, combined with our experience in the financial and wealth advisory industries, will be valuable to FolioDynamix as the company expands its offering and continues to accelerate its growth.”