In brief

November 17, 2021

Stratiphy has forged a partnership with WealthKernel, a wealthtech provider of digital investment services, to launch its investment app in the UK next year.

Stratiphy’s app enables users to make investment decisions by allowing them to compare different scenarios.

It also provides investors the option to select their own investment preferences and view historical performance.

Additionally, the app combines analytics and environmental, social, and governance ratings (ESG) to help users compare companies.

As part of the tie-up, Stratiphy will leverage WealthKernel’s investment infrastructure as well as and its Appointed Representative service.

The partnership will also see the firm tapping WealthKernel’s brokerage and custody services as well as its regulatory umbrella to support the UK rollout of its app.

November 17, 2021

Morningstar Investment Management, a subsidiary of independent research provider Morningstar, has selected SMArtX Advisory Solutions to power its turnkey asset management platform.

SMArtX will provide its cloud-native account technology to support Morningstar Investment Management’s integrated advisor solution.

This solution will enhance day-to-day tasks for opening, managing, and monitoring client accounts.

Morningstar Investment Management president Daniel Needham said: “Putting investors first permeates everything we do, including the technology choices we make to help advisors put their clients’ needs front and centre.

“Leveraging SMArtX’s flexible and scalable API for unified managed accounts technology for enterprises helps us create a seamless experience for advisors that drives successful investor outcomes.”

The strategic and commercial partnership between the companies follows Morningstar’s direct investment in SMArtX earlier this year.

The investment, structured as a convertible note, was intended to support the continued growth of SMArtX.

November 17, 2021

Brazilian broker XP has acquired a minority interest in Brazil-based equity and hedge funds manager Vista Capital.

Financial terms of the deal were not disclosed.

Vista Capital, which has over R$4.5bn in assets under management (AuM), was founded by Rio de Janeiro in 2014.

The deal forms part of XP’s strategy to build out an ecosystem of managers and distributors in Brazil.

Announcing the deal, XP said in a statement: “Vista has a solid performance track record in hedge funds and equity funds, with its flagship fund Vista Multiestratégia FIC FIM yielding 444% since inception and net of fees, against 68% of its benchmark.

“Both teams expect that, along with Vista’s ability to further develop new products, it can grow its AUM, and benefit both the asset manager and our funds platform.”

In June this year, XP purchased a minority interest in Jive Investments as part of its initiative to support independent asset managers in Brazil within an entrepreneur-friendly ecosystem.

November 17, 2021

California-headquartered robo-advisory platform Wealthfront is reportedly mulling business divestment at a valuation of around $1.5bn.

The firm has hired a financial adviser to explore the options for sale, Bloomberg reported citing people familiar of the development.

According to the sources, Wealthfront’s potential buyers include banks and special purpose acquisition companies.

They also added that the robo-adviser is yet to finalise its decision on the sale and could choose to stay independent.

Wealthfront did not comment on the news.

Founded in 2008 by Andy Rachleff and Dan Carroll, Wealthfront provides financial planning, and investment management via its platform.

The firm, which also offers banking-related services, recently expanded into other financial services such as cash accounts and payments services.

According to its website, the company has around 450,000 users on its platform.

November 17, 2021

Kudu Investment Management has acquired a minority holding in small-cap specialist Granahan Investment Management (GIM), which has $5.8 bn in asset under management (AUM).

The size of the investment and the stake obtained by Kudu was not disclosed.

Under the agreement, GIM will continue to hold full control of the firm with over 75% equity of the firm held by its employees.

Established in 1985, GIM provides small cap equity portfolios for institutions and high net worth individuals globally.

Its offerings include US micro, small, SMID, and mid cap strategies, in addition to international and global small cap.

The firm serves as sub-advisor on four unaffiliated mutual funds in the US and offers a range of Irish-domiciled UCITS funds to non-US investors

November 16, 2021

Point72 Asset Management, the family office managing the wealth of Steven A. Cohen, has raised $600m for its first private equity fund.

The funds raised comprise client cash as well as money from Cohen, Bloomberg reported citing a person familiar with the development.

Dubbed Point72 Hyperscale, the fund is set up to acquire companies and modernise and enhance their efficiencies.

Cohen said: “The close of our first private equity fund with external investors marks an important milestone as our institutional private investing business enters a new phase of growth and maturity.

“Point72 has a unique opportunity to apply our investment model and deep expertise to capitalise on the vast opportunities presented by investing in promising private companies.”

November 16, 2021

Investment firm KKR has obtained a stake in California-based wealth advisory firm Beacon Pointe as part of its investment in the firm.

KKR is making its investment in Beacon Pointe through its North American private equity strategy.

The deal, whose financial terms were not revealed, is expected to close before year-end, subject to customary closing conditions.

November 16, 2021

Utmost Group has secured all necessary regulatory and competition approvals to complete its previously announced acquisition of Quilter International.

The deal is now slated to close on 30 November 2021.

According to a company statement, Utmost Group received green light from the European Commission, the Isle of Man Financial Services Authority and the Central Bank of Ireland for the deal.

Separately, Utmost also received go-aheads from the Dubai Financial Services Authority and the Insurance Authority of Hong Kong and the Monetary Authority of Singapore.

Notably, a subsidiary of Utmost Group signed an agreement in April to acquire Quilter International from Quilter. Total consideration payable will be £481m ($645.58m).

Quilter International provides cross-border wealth management solutions.

November 12, 2021

UK-based Independent Wealth Planners (IWP) has acquired north east Scotland-based Alex M Grant and Surrey-based Custodian Wealth Management.

The acquisitions, whose financial details were not disclosed, adds £362m in assets to IWP.

Alex M Grant offers independent financial advice to families and businesses. The firm, led by founder and principal Alex Grant, manages a total of £290m in client assets.

Under the agreement, the firm will become a part of IWP’s regional firm for Aberdeenshire, Buchanan and Associates.

Founded in 2004 by Branimir Gavrilovic and Richard Sutcliffe, Custodian Wealth Management manages £72m in assets under advice on behalf of its 200 clients.

The firm will form part of Murdoch Asset Management, IWP’s regional firm for Hampshire and Surrey.

November 12, 2021

Schroders Capital has agreed to buy Dutch real estate fund and asset management business Cairn Real Estate in a bid to bolster its real estate investment capabilities.

The firm is purchasing Cairn from the German investment management group MPC Capital. Financial terms of the deal were not disclosed.

Founded in 2006, Cairn manages €1.3bn in assets on behalf of institutional, family office and private equity investors.

The firm has a team of 26 employees, who are led by co-heads Pieter Akkerman, Maarten Briët and Sven van Loon.

The Amsterdam-headquartered firm has a satellite office in Haarlem.

The deal is expected to help Schroders Capital to boost its client offering in a key European growth market.