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FNZ Secures $650 Million From Existing Backers as Dilution Lawsuit Continues

FNZ says the cash will support credit ratings to sustain investment for growth.

Overview

  • Participants included La Caisse, CPP Investments, Generation Investment Management and Motive Partners, plus clients such as Aberdeen, Aviva, FirstCape, Ninety One and Nucleus Financial Platforms.
  • FNZ did not disclose the round’s terms or an updated valuation and reiterated its view that the shareholder lawsuit lacks merit.
  • Roughly 200 common shareholders allege previous preference-share financings, totaling about $1.5 billion, unfairly diluted their stakes with preferred returns and special dividends for large investors.
  • Plaintiffs say three attempts to stay the case in New Zealand’s High Court have failed; Summit Partners withdrew earlier, and a third plaintiff has since been added.
  • FNZ reports $2.1 trillion on its platform, a pre-tax loss of $688 million last year, and a target to achieve positive free cash flow by the second half of 2027, with La Caisse as its largest single shareholder and CPP Investments having invested $1.1 billion in 2022.