Private equity firm H.I.G. Capital said one of its affiliates agreed to sell its stake in Edinburgh-based wealth management fintech firm FNZ to Caisse de Depot et Placement du Quebec (CDPQ) and Generation Investment Management LLP in a transaction valuing FNZ at £1.65 billion.

Tanfield-based FNZ calls itself a “platform-as-a-service provider to the European wealth management industry.”

FNZ CEO Adrian Durham said: “We would like to thank the H.I.G. team for their advice, investment and operational support over the years.

“Under H.I.G.’s ownership, we have successfully partnered to deliver exceptional growth and value creation for our investors, whilst driving down long-term costs for financial institutions and consumers alike.”

H.I.G. Capital managing director Carl Harring said: “H.I.G. is proud to have been a long-term partner of FNZ.

“During our nine years of ownership, the company experienced exceptional growth in assets under administration from £5bn to over £330bn, and became the European Platform-as-a-Service market leader in the wealth management industry.

“FNZ has delivered an outstanding return for H.I.G. and its investors; we look forward to following the company as it continues on its rapid global growth path.”

JP Morgan acted as financial adviser to H.I.G. Capital.