Platform technology firm FNZ will become a minority stakeholder in Embark Group, the companies announced today.
Embark is the parent company of Sipp providers Rowanmoor and Hornbuckle, fund research business The Adviser Centre, as well as offering The Embark platform.
FNZ’s holding will be 9 per cent and will be handed via a small right issue.
The firms say in a statement that the investment will promote the growth of Embark’s business. FNZ will not have any operational involvement, control, or oversight, Embark says.
FNZ and Embark will also extend their five-year partnership for FNZ to run the technology behind the Embark platform for another ten years.
The companies said the partnership will bring together Embark’s retirement and distribution expertise and FNZ’s scalability and technology.
In 2017, Embark launched an investment wrap platform for financial advisers, which is powered by the FNZ technology.
Embark Group chief executive Phil Smith says: “[FNZ’s] support has enabled us to put platform solutions behind large parts of the ‘robo’ and retail banking markets for pensions, whilst also facilitating our competitive disruption of the IFA wrap space.
FNZ chief executive Adrian Durham says: “We contracted in late 2013 with Embark when they were a small start-up player. We liked their ambition in the key retirement space and how they saw the platform market developing.
“Today they have over £15bn in assets under management, much of which sits on our technology. They have solid distribution relationships and the right proposition for the UK market, and we believe will emerge as long-term winners in a competitive sector.
“They are one of the growth engines of FNZ, but moreover a great partner in the ongoing development of our digital footprint and services to the wider market.”