Investment management company Invesco is selling its financial advice and investment management provider, intelliflo, with operations in the U.K. and U.S., to global investor Carlyle Group.
Washington, D.C.-based Carlyle Group will buy Intelliflo for $135 million at closing, with another potential $65 million in future earnouts, with a plan to separate its U.S. businesses from its U.K. and Australian operations, the latter of which will continue under the name intelliflo. The firms expect the deal to close in the fourth quarter.
The deal includes Intelliflo’s U.S. subsidiary, RedBlack, which offers SaaS-based portfolio rebalancing tools and portfolio management software for registered investment advisors. It also includes i4c, a cashflow modelling offer, Jempstep, a robo-advisor, and Portfolio Pathway.
Through the deal, all of those U.S.-based subsidiaries will operate as a standalone company called RedBlack, run by a separate management team from the U.K. and Australian businesses.
Bryan Perryman, who had been Chief Operating Officer of intelliflo, will be CEO of the newly formed RedBlack. It currently has about $825 billion in assets serviced on its platforms.
In a statement, he said the firm is focused on being in the market as “an agile, standalone company” that will offer “market-leading software solutions for our US RIA customer base.”
Nick Eatock, the founder of intelliflo, will remain CEO of that business, which he sold to Atlanta-based Invesco in 2018.
Carlyle will act as a partner in carving out the businesses and establishing the new leadership teams. The global private equity player is funding the deal through a #3.5 billion fund called Carlyle Europe Technology Partners.
Intelliflo was founded in 2004 in London to provide client relationship management, financial planning, client onboarding, compliance, and reporting to financial advisors. The new deal aims to solidify its position in the U.K. with its intelliflo Office, and to expand its presence in Australia.
Evercore was the financial advisor to Invesco on the deal. That firm’s stock, which is listed on the Nasdaq, rose after the news.
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