Hg has agreed to acquire a majority stake in Riskalyze, a wealth management platform serving financial advisors, enterprises and asset managers. No financial terms were disclosed.
AUBURN, CALIFORNIA, USA and LONDON, UNITED KINGDOM — August 25th, 2021 – Riskalyze, Inc., an industry-leading risk-centric wealth management platform serving financial advisors, enterprises, and asset managers; and Hg, a leading global investor in software and services, today announced a definitive agreement for Hg to acquire a majority interest in Riskalyze. Terms of the deal are not disclosed.
Riskalyze’s industry-leading client and portfolio risk technology is rapidly emerging as an industry standard for advisor, client and portfolio risk analytics across the US wealth management ecosystem. Today, Riskalyze’s 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 marks a major inflection point for the fast-growing company, 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 company has added thousands of advisors to the platform just in the last twelve months, and has signed key enterprise clients such as Cetera, Atria Wealth, Grove Point, Hightower, Boston Private and Private Advisor Group.
Riskalyze co-founder Aaron Klein will reinvest the majority of his holdings into the recapitalized firm, and continue to lead the company as CEO and a member of the Board of Directors.
“We are thrilled to welcome Hg to Team Riskalyze and are excited to have found the perfect partner to write this next chapter of our story,” said Klein. “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 SaaS platform to build and scale a strong wealth management technology business in the United States. Hg is a software and services investor with extensive experience in the global fintech sector, having invested in over 10 fintech leaders in just over five years and investing over $1bn in the sector to date. Hg has a track record of partnering with founder teams of high-quality and scalable technology solutions to the financial advisor ecosystem, including current investments, such as FE fundinfo, a leading provider of fund data, analytics and software solutions to asset and wealth managers in Europe. This scale and experience will provide Riskalyze with ample access to additional capital and expertise as needed to complete future acquisitions or organic growth.
Max Dewez, Director at Hg in New York, said: “Riskalyze has seen significant momentum in the last few years. The team have successfully established themselves as providing a best-in-class SaaS tool that solves real business challenges in a sector still seeing increasing tech adoption. Riskalyze’s software enables advisors to participate in key trends in wealth management and offer more holistic engagement with their clients. We’re delighted to join the team and support the momentum of a modern software business of scale, backed by a visionary founder CEO and strong supporting team.”
The transaction is subject to customary closing conditions and regulatory approvals and is expected to close before the end of September. Hg’s Sebastien Briens, Max Dewez and Richard Earnshaw will join the Board after closing. The company expects to announce additional board appointments in the near future.
Riskalyze is the company that invented the Risk Number®, which powers the world’s first Risk Alignment Platform and was built on top of a Nobel Prize-winning academic framework. Advisors, broker-dealers, RIAs and asset managers use the Riskalyze platform to create alignment between clients and portfolios, leverage sophisticated analytics to increase the quality of their advice, automate trading and client account management, and access world-class models and research in the Riskalyze Partner Store — all with the mission of empowering the world to invest fearlessly. To learn more, visit www.riskalyze.com.