Key Takeaways
- Sector: Financial Services & Fintech.
- Geography: United Kingdom.
Analysis
Private equity firm Hg is exploring a potential $1.9 billion exit from FE fundinfo, a UK-based provider of financial data and analytics, as global interest in scalable fintech businesses continues to grow. The process, still in the early stages, could begin formally by late 2025 or early 2026, according to individuals familiar with the matter.
FE fundinfo, which was formed in 2018 through the merger of FE, fundinfo, and F2C, has become a key technology partner for asset managers and wealth platforms across Europe. The business provides investment data, regulatory reporting, and analytics tools, serving both buy-side institutions and intermediaries.
Hg, which initially backed the company in 2018, is reportedly working with advisers to assess strategic options. The firm is seeking a valuation north of £1.4 billion ($1.9 billion), based on projected EBITDA of £70 million and an expected multiple exceeding 20x. These figures reflect the premium investors are willing to pay for data-rich, recurring-revenue fintech platforms.
Over the past 24 months, FE fundinfo has expanded aggressively through acquisitions, including UK-based Fundipedia, Swiss AI firm Lunar, and German financial product specialist Dericon. These moves have helped it broaden its data sets, extend its European reach, and enhance its tech stack to meet growing regulatory and transparency demands in global fund distribution.
Sources suggest the potential sale is expected to attract interest from strategic buyers like global stock exchanges, wealth management tech providers, and private equity firms looking to deepen their exposure to financial software. The scarcity of scaled fintech infrastructure assets in Europe could drive up valuations and competitive tension in the process.
Hg’s track record in enterprise and fintech software, including its stakes in Access Group, IRIS Software, and Sovos, positions it as a top-tier investor in mission-critical platforms. The firm has demonstrated repeated success in scaling niche B2B tech firms before strategic exits or recapitalizations.
Across the market, private equity firms are capitalizing on strong demand for financial data and analytics businesses. In 2024, Permira sold a stake in wealth tech firm WealthCap for €1.6 billion, and Vista Equity Partners exited Allvue Systems in a deal valued at over $2.3 billion. Earlier this year, Silver Lake began exploring strategic options for its stake in ION Analytics.
The broader sector has benefited from institutional investors’ need for transparency, compliance automation, and performance optimization. As firms globally seek to digitize fund operations, the demand for integrated platforms like FE fundinfo is only expected to intensify.
The potential exit would mark one of the UK’s most notable fintech M&A transactions in 2025, reinforcing London's ongoing relevance as a hub for financial innovation despite regulatory headwinds.