Carlyle announced plans to buy Intelliflo from Invesco. Intelliflo makes cloud-based management software for independent financial advisors in the UK. The deal includes Intelliflo’s US subsidiaries: RedBlack, which offers portfolio rebalancing tools, and Intelliflo Portfolio, software for US financial advisors.
The price is up to $200 million, comprising $135 million at closing, with an additional $65 million possible later. Founded in 2004 and based in London, Intelliflo’s platform is used by over 30,000 professionals at 2,600 firms, managing about £450 billion. Its software handles client management, financial planning, onboarding, compliance, and reports, and integrates with 120 apps. The purchase will help Intelliflo expand in Australia and maintain its position in the UK.
Following the deal, Intelliflo’s US subsidiaries will become a separate company called RedBlack, managed independently to serve US clients better. Intelliflo will focus on the UK and Australia, while RedBlack serves US advisors. Carlyle will help both businesses grow. The investment will be funded by Carlyle’s €3 billion Europe-based technology fund, which invests in software and financial tech companies.
Advisors/counsel: Evercore served as financial advisor to Invesco and HSF Kramer acted as legal adviser. Altman Solon, PWC, Oliver Wyman and Ringstone conducted due diligence on the acquisition. Gibson Dunn acted as legal counsel to Carlyle.
KEY QUOTES:
“intelliflo is a mission-critical software provider to the UK’s wealth management ecosystem, with a deeply embedded and loyal customer base. We are excited to partner with Nick, Bryan, and the team to unlock the company’s full potential and deliver a new stage of growth.”
Fernando Chueca, Managing Director in the CETP investment advisory team
“This is an exciting moment for intelliflo. Carlyle’s investment reflects its trust in our business and its deep experience in scaling software companies make it an ideal partner for our next phase of growth. With Carlyle’s support, we will continue to focus on delivering great value to our clients, with a renewed focus on building innovative solutions for the evolving needs of our core UK and Australian customer bases.”
Nick Eatock, CEO and Founder of intelliflo
“Our team is highly motivated by the opportunity to bring our full focus onto the US market as an agile, standalone company. RedBlack has a rich history of delivering market-leading software solutions for our US RIA customer base. We are excited to be backed in this endeavour by a sponsor with the reputation and credentials of Carlyle, which will continue to best position RedBlack to support advisors’ needs.”
Bryan Perryman, the CEO of the newly formed RedBlack
“As intelliflo and the newly incorporated RedBlack embark on their next phases of growth with Carlyle, we are confident that both companies are well-positioned for continued success and innovation in the wealth technology space. We look forward to our continued relationship with intelliflo and RedBlack through our common interaction with wealth advisor clients.”
Doug Sharp, Senior Managing Director, Head of Americas and EMEA, at Invesco
