What our team of Investors, Operators and Innovators have been up to over the last month
To many, Motive has become known for our ‘edge’ – our integrated model of bringing together a powerful patchwork of investing, operating and innovating capabilities to invest in the financial technology opportunity. We believe that this enables us to provide transformational capital to our portfolio company partners that truly changes the trajectory of these companies in partnership with their management teams.
Our most recent case study of the Motive model in action was the closing of our acquisition of BetaNXT, on which we partnered with Clearlake to carve out the BETA+ assets from the London Stock Exchange Group. Our team of investors, operators and innovators have been working on this transaction for over two years as a critical piece in the execution of our wealth management thesis.
Want to know more? The piece below has been written by our team of investors, who worked on the deal. Here’s why we decided to invest in BetaNXT:
Motive Partners agrees to acquisition of BETA+ from London Stock Exchange Group
On July 1st, we completed our acquisition of the BETA+ assets
(composed of BETA Post-trade Processing, Maxit, and Digital Investor) from the London Stock Exchange Group (“LSEG”). Going forward, the company will collectively operate as BetaNXT
, reflecting its evolved strategic vision and its role as the next pivotal piece in Motive’s execution of its bold investment thesis in the wealth management sector.
Since 2018, Motive has been constructing a front-to-back-office wealth management ecosystem to effectively serve our portfolio companies’ customers, their advisors and end-clients. The combination of our Finantix and Tegra118 assets under the InvestCloud
umbrella in 2021 (including the add-on acquisitions of RetireUp
along the way) heralded a premier front- and middle-office wealth management platform. Our investments in Wilshire
continued to leverage our firm’s deep expertise in the space, strengthening our portfolio in the industry. And finally, the acquisition of BetaNXT bolsters this platform through the addition of an infrastructure-like back-office platform allowing wealth management firms to transition to a self-clearing model.
BetaNXT’s core post-trade processing business has a loyal customer base and generates strong cash flows to support our multifaceted value creation plan (“VCP”). The BetaNXT solution set also includes cost and tax basis reporting, advisor tools, and investor portals, further supplementing our wealth ecosystem’s front office offerings. In addition, Motive and Clearlake formed a long-term strategic partnership with LSEG, through which LSEG will work hand in hand with BetaNXT and Motive and Clearlake’s wealth management portfolio companies, including InvestCloud, to provide content, data, and tools.
We believe that this transaction exemplifies Motive’s core strengths and significant value proposition. Teams from across the Motive platform – investors, innovators, and operators – came together over the last two years to bring this deal across the finish line:
Motive Create (innovators) collaborated with our Industry Partners (operators) and Investment Team (investors) to construct a comprehensive VCP detailing our strategy to transform the asset through technological modernization, M&A, functionality, and total addressable market expansion, and partnerships with the broader Motive wealth ecosystem. The Motive Create team also conducted detailed technology diligence to deliver actionable enhancements, some of which may be accelerated through the partnership with InvestCloud and are expected to deliver significant value to BetaNXT and its clients.
Our Industry Partners were actively involved in conceptualizing the value creation plan during the diligence process and standing up the business after signing. Going forward, industry legend Stephen C. Daffron
(Co-Founder & Industry Partner at Motive), has stepped in as Chairman and Chief Executive Officer of BetaNXT to lead the company in the execution of the evolved vision, leveraging his vast operational and carveout experience from the turnaround of Motive portfolio company Dun & Bradstreet (exited in January 2021) and, prior to that, Interactive Data Corporation. Steve is joined by Caroline O’Connell
(Industry Partner at Motive Partners) as Chief Administrative Officer, amongst other executive hires and talent deployments
In conclusion, through attractive M&A to augment the platform and catalyze growth acceleration, technology improvements, and TAM expansion, we believe we will create value for BetaNXT’s customers and our investors. A tremendous amount of thoughtful work over the last couple of years has been the driving factor to support our conviction in this asset. But the real work is just beginning. We are confident that Steve and the BetaNXT team, supported by our Industry Partners, the Motive Create Team, the Investment Team and the BetaNXT board, will execute, and continue Motive’s transformation of the wealth management sector at a critical time for the industry. Our success will be achieved through working tirelessly to ensure the continued stability and high-performance of this storied platform while bringing in the right doses of innovation and transformation that defines the Motive approach.
This piece was authored by: