A decade after its inception, Toronto-based wealth management tech startup Nest Wealth has been acquired by Italy-based Objectway Group.
As part of the deal, Objectway plans to add Nest Wealth’s client onboarding and financial planning solutions to enhance its own wealth and investment management offering. In a statement, Randy Cass, Nest Wealth founder and CEO, said the acquisition will accelerate Nest Wealth’s expansion in new markets, including in Europe, the Middle East, and Africa.
“In Objectway, we have found the perfect partner, giving our employees and customers continuity, stability and an exciting future of continuous development to solve their problems,” Cass added. The financial terms of the acquisition were not disclosed. However, Cass told The Globe and Mail it was an “attractive deal for all shareholders.”
Nest Wealth claims to serve half of the Big Six, including National Bank, which has previously funded the startup via its venture arm.
Founded in 2014, Nest Wealth provides digital solutions aimed to help financial institutions, asset managers, and custodians manage client investments. Nest Wealth’s core capabilities include digital onboarding, rebalancing, and customized ETF portfolios. While Nest Wealth’s platform is available to individual investors, the offering caters to financial institutions and advisors, unlike other robo-advisor solutions like Wealthsimple.
Nest Wealth claims to serve half of Canada’s Big Six banks. One of those is National Bank, which also funded the startup via its venture arm, NAventures. These investments included a $6-million injection in 2017, followed by $50 million in 2020. According to The Globe, Objectway has acquired 100 percent of Nest Wealth, including the shares held by National Bank.
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“The Nest Wealth team has built a remarkable digital wealth platform with an eminent client base,” Luigi Marciano, Objectway founder and group CEO, said in a statement. “We look forward to working with them to maximize our business potential, grounded on our common focus on digital innovation and on the same modular, flexible and “as-a-service” approach.”
Objectway, founded in 1990, provides software solutions in the wealth, investment, and asset management sectors. The company serves over 200 banks, wealth managers, asset managers, and insurers in more than 15 countries. For Objectway, the acquisition of Nest Wealth gives it a significant beachhead in the North American market.
According to The Globe and Mail, all of Nest Wealth’s team, totalling 80 people, will remain with the company.
Feature image courtesy Nest Wealth.
