Kiwi Wealth has sold online investment platform Hatch to FNZ - a global wealth management platform - for an undisclosed sum.
Hatch was founded in 2018 to give consumers direct access to investing in US sharemarkets and has grown quickly since then. It now has 130,000 users with more than $2 billion transacted on the platform since its launch.
FNZ is a global fintech that has US$1.5 trillion in assets under administration. It partners with banks, insurers and asset managers to jointly develop multi-channel wealth management solutions for millions of customers.
James McDonnell, chief executive of FNZ New Zealand which is based out of Wellington, said the acquisition would provide it with a strategic opportunity to gain exposure to the direct to consumer segment in New Zealand.
He said Hatch would remain an autonomous business unit within the FNZ Group which would allow the business to retain and follow its entrepreneurial instincts while gaining access to FNZ's infrastructure and technology to significantly accelerate the growth of the business.
"What Hatch has achieved in the three years since its inception and with the support of Kiwi Wealth is admirable.
"The business has reached a logical point in its lifecycle to pursue ownership transition, and FNZ now has the capability and appetite to build on these foundations in order to achieve a step-change in their growth trajectory."
McDonnell said the move was also consistent with the needs of FNZ's existing customer base, as having exposure, insight and experience in this segment of the market would allow FNZ to provide a more relevant proposition to its customers whilst also creating an attractive entry point for a more sophisticated offering.
Hatch co-founder and general manager Kristen Lunman said the new ownership would give Hatch the necessary backing to scale at the pace a high-growth start-up requires.
"In the future, with FNZ's support, we intend to offer our customers further options that put their money to work, provided by the same team and community they are familiar with. FNZ has the resource, appetite, and global footprint to take Hatch to the next level."
Kiwi Wealth acting chief executive Rhiannon McKinnon said it was proud to have incubated the Hatch platform and seen it grow into the popular online investment platform it is today.
"We recognise Hatch's appetite for expansion following the success of the incubation period, and this new owner will enable it to reach its full potential in the global arena.
"The sale of Hatch will enable Kiwi Wealth to further invest and innovate in the advice space to help Kiwis make better financial decisions in the long term."