Sidley, Kirkland, Cooley Aid Deal to Recapitalize InvestCloud

Sidley Austin advised Clearlake Capital Group, and Kirkland & Ellis advised Motive Partners, in their deal to combine InvestCloud and two other fintech leaders into a digital wealth management platform with assets topping $4 trillion.

The deal calls for affiliated funds of the two private equity firms to buy an 80% stake in InvestCloud, which is advised by Cooley. Accenture, Citi Ventures, and Fiserv also have stakes.

L.A.-headquartered InvestCloud, which says its clients include many of the world’s biggest financial institutions, private banks, and insurers, will be combined with two “complementary” fintech units from Motive Partners’ portfolio: Tegra118, for its U.S. managed account platform and product innovation, and Finantix, for its private banking expertise and its European and Asian focus.

InvestCloud co-founder and CEO John Wise said the “recapitalization” values the combined company at $1 billion.

The combined company, operating as InvestCloud and led by Wise, has over 500 direct clients, including over 380 wealth managers and over 120 asset managers, with hundreds more indirect clients, a statement says.

Rob Heyvaert, chairman of InvestCloud and founder and managing partner of Motive Partners, said the company’s research into macro and regional wealth-tech trends led it to acquire Finantix, Tegra118, and InvestCloud.

“Today marks both our collective intent and an important opportunity for the industry,” Heyvaert said, “as the newly-formed InvestCloud Group unveils its combined vision for clients across multiple regions and sub-sectors of financial services.”