Caisse de dépôt et placement du Québec and Generation Investment Management LLP, through their newly formed sustainable equity partnership, purchased a majority stake in FNZ in a deal valuing the financial technology company at £1.65 billion.

The transaction marks the first investment for the CDPQ-Generation Partnership, under which the Canadian and British investment managers aim to invest an initial US$3 billion for a period of eight to 15 years in sustainable businesses that will be net positive for the environment and benefit society, as well as use advanced technology to drive change.

The sellers were private equity firms General Atlantic and H.I.G. Capital LLC.

FNZ partners with banks, insurers and asset managers to provide wealth management solutions to mass-market workplace pensions, mass-affluent and high-net-worth individuals and other clients.

Following the transaction, about 400 of FNZ's employees will remain shareholders, representing about 33% of the company's equity.

JP Morgan was the financial adviser to H.I.G. Capital and General Atlantic.

Caisse de dépôt et placement du Québec is an institutional investor that manages funds mainly for public and parapublic pension and insurance plans. Generation Investment Management is an investment management firm focused on sustainable companies.