Aquiline to Take Control of MassMutual-Owned Wealthtech Flourish
Aquiline has agreed to acquire a controlling interest in Flourish, a MassMutual-owned wealth technology platform that helps independent registered investment advisors extend their services beyond traditional portfolio management.
New York-based Flourish provides advisor-led cash-management and home-lending products designed to help RIAs retain more of their clients’ financial relationships. The platform works with more than 1,300 advisory firms representing over $2.6 trillion in assets under management, including Focus Financial Partners, Carson Group and Mariner Wealth Advisors.
Flourish holds more than $8 billion in assets under custody through its cash-management solution, up from $1 billion five years ago. The platform has also generated more than $1 billion in net new flows to custodians, according to the company.
In March, Flourish launched a home-lending platform developed for independent advisors. The service offers purchase mortgages, refinancings and cash-out refinancings, including loans of as much as $10 million for primary residences and investment properties.
The offering addresses a competitive disadvantage for independent RIAs, which often must refer clients elsewhere for banking and lending services available through wirehouses and private banks.
“Flourish was built on a single insight: identify where clients’ financial lives spill outside the traditional advisory relationship and help advisers grow by bringing those assets into their orbit,” CEO Max Lane said.
David Canter, the former head of Fidelity’s RIA and family-office businesses, will join Flourish’s board as executive chairman.
Aquiline specializes in financial services and technology investments. Its previous wealth and retirement holdings include Ascensus, AssetMark, RIA-in-a-Box and SageView. The firm managed approximately $11 billion as of March 31 and has deployed about $8.4 billion since inception.
MassMutual will retain a significant minority stake following the transaction, which is expected to close in the fourth quarter. Financial terms were not disclosed.
Wells Fargo acted as Exclusive Placement Agent and Financial Advisor to Flourish and MassMutual.