Carlyle Group, an investment firm, will purchase Invesco’s investment management and financial planning arm, Intelliflo for $200 million.

Carlyle Group is set to pay $135 million at closing, and the possibility of an additional $65 million for future gains. Both firms expect the acquisition to close in the fourth quarter of this year.   

Founded in 2004 and acquired by Invesco in 2018, Intelliflo is a provider of practice management software for independent financial advisors. Intelliflo offers a wide variety of tools, including financial planning, recruitment management services, compliance, customer relationship management, and various reporting features.   

The transaction will allow London-based Intelliflo to strengthen its position across the U.K. and further its advancements in Australia, Carlyle said.

Following the acquisition, Intelliflo’s U.S.-based subsidiaries, will operate as an independent division, dubbed RedBlack, which provides SaaS-based portfolio rebalancing tools for RIAs and financial advisors.  

The team will be controlled by a separate management team from its U.K. and Australian businesses. Intelliflo’s COO Bryan Perryman will assume the role of CEO of RedBlack, the firm said. 

The split will grant both businesses the opportunity to provide services to their respective markets, and the equity for the investment was made through Carlyle’s $3.5 billion Carlyle Europe Technology Partners V Fund, which provides investments in technology companies across Europe. 

“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,” Doug Sharp, senior managing director and head of Americas and EMEA at Invesco, said. 

For this acquisition, Evercore served as the financial advisor for Invesco, and HSF Kramer served as the firm’s legal adviser. Altman Solon, PWC, Oliver Wyman, and Ringstone conducted due diligence on the acquisition. Gibson Dunn acted as legal counsel to Carlyle Group.