TLDR: Private equity firm Hg is reportedly exploring the sale of its UK-based financial data and analytics provider, FE fundinfo, in a deal that could value the company at over $1.9 billion. The move follows a trend of high-valuation deals in the financial technology sector and marks renewed activity for private equity in M&A. FE fundinfo, which provides investment data and performance analysis, has recently expanded through acquisitions, including AI firm Lunar AI.
London/Frankfurt – Private equity giant Hg is reportedly initiating steps to explore a potential sale of FE fundinfo, a prominent UK-based financial data and analytics provider, according to sources familiar with the matter. The anticipated transaction could value FE fundinfo at more than $1.9 billion, reflecting a valuation of over 20 times its projected earnings before interest, taxes, depreciation, and amortisation (EBITDA) of approximately 70 million pounds ($93.2 million) for the current year.
The exploration of a sale by Hg comes amidst a robust period for the financial technology and data sector, which has seen a series of companies change hands at elevated valuation multiples. This potential divestment also underscores a resurgence in private equity deal-making, contributing to a global M&A market that has reached a $2.6 trillion peak year-to-date.
FE fundinfo, established in 2018 through the merger of FE, F2C, and fundinfo – the same year Hg became an investor – serves as a critical provider of investment data and performance analysis to asset managers and other financial institutions. The company’s core mission involves connecting fund managers and distributors, facilitating the sharing of trusted information to enhance investment efficiency.
While preparations are still in the early stages, Hg has begun engaging advisers for the potential sale. An auction process is tentatively expected to commence towards the end of the year, though the timeline could extend into next year. Both Hg and FE fundinfo have declined to comment on the ongoing developments.
The market anticipates strong interest from a diverse range of potential buyers, including global exchange groups, wealth management platforms, and other private equity firms, drawn by FE fundinfo’s scaled, data-driven fintech assets. Hg itself boasts a strong track record in financial technology and software investments.
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FE fundinfo has demonstrated a proactive growth strategy, completing five acquisitions in the past year alone. Notable recent acquisitions include data firm Fundipedia in May, UK-based Lunar AI in April, and German fintech specialist Dericon last year, all for undisclosed amounts. The acquisition of Lunar AI specifically highlights the company’s expansion into artificial intelligence capabilities, further enhancing its technology offerings and market footprint.
