Financial Services spin-out success stories
The current landscape is encouraging businesses of all sizes to revisit their strategic priorities, from large corporates to mid-market firms and their various divisions. Unlocking the potential of overlooked assets can provide the breathing room and support they need to flourish.
Separating high-potential units from their parent companies can inject fresh energy into both the businesses themselves and the teams driving them. Public companies in particular often face the challenge of prioritising predictable results over bolder initiatives which may deliver more value over time. This focus on consistency can dampen ambition, while a well-structured partnership can encourage a more dynamic and longer-term outlook.
Inflexion supports businesses through complex carve-outs towards full independence, a process that typically takes around 12 months. Drawing on a deep network of experts and in-house capabilities, Inflexion offers hands-on support across technology, IT, finance, and HR during this critical phase. Its experience across various subsectors – including investment platforms, TICC, and fund services – lends valuable support during the specific challenges and opportunities typically inherent in carve-outs.
“Our growing experience in carve-outs means we understand what is needed to ensure they succeed,” points out Andrea Bertolini, Partner and Head of Financial Services for Inflexion. “We often work with teams even before completion to ensure the carve-outs succeed, with the standalone company best-placed for our aligned growth plans.”
Maintaining close collaboration with stakeholders and staying focused on agreed objectives allows Inflexion to help businesses progress smoothly from transition to growth. Crucially, this approach doesn’t require founders or management teams to relinquish control. Increasingly, Inflexion is working alongside companies through minority strategic partnerships, providing tailored support to help them realise their ambitions.
Finanzen.net At the end of last year, Inflexion announced its sixth carve-out in four years with its investment alongside founders in Finanzen.net to take the business out of transatlantic media business Axel Springer.
Ocorian The growth of Ocorian since its 2016 carve-out by Inflexion has been truly transformational, with headcount swelling from 186 to approx. 1,800 today, with M&A a huge part of its journey and success.
Inflexion has a proven track record in effecting carve-outs and supporting their growth as an independent entity.
Finanzen.net
Inflexion announced its sixth carve-out in four years with its investment in Finanzen.net Group, a digital broker and market leading financial information portal in the DACH region, alongside the founders. The business was acquired from transatlantic media company Axel Springer.
The Group consisted of three divisions at the time of the carve-out: high-growth low-cost digital investment platform, also known as a neobroker, called Zero; a capital markets information platform called Finanzen.net; and a trading software platform for semi-professional retail investors called TraderFox. Key to the value creation plan (VCP) was integrating these three businesses.
People would prove pivotal to any success, so to help steer the integration, VCP and the carve-out itself, a Chief Transformation Officer and interim resources were brought in at the outset. These resources were supported by experienced Board hires, while a management incentive plan was set out to retain existing talent and attract new.
A carve-out plan was agreed between signing and completion, with financial independence a key focus. This involved building a standalone finance function, and the CFO has been supported to design this. Novating contracts was crucial, and Inflexion offered support here and with designing new and more agile tech architecture. Cybersecurity has been strengthened, and a keen focus is now on improving Finanzen.net’s use of data and AI.
“We want to develop Zero in connection with the financial news business into the broker of choice for investing, trading and saving, delivering innovative technological solutions for capital markets. I am thrilled that with Inflexion we are partnering with a successful investor who will support us in executing on this strategy with investments in products and technology,” says Maximilian von Richthofen, CEO of Finanzen.net Group.
Ocorian
Inflexion partnered with fund, corporate and trust administration business Ocorian in 2016 by carving it out of law firm Bedell Cristin, having recognised the potential in Ocorian following Inflexion’s then very recent and relevant experience with Sanne, which it successfully listed in 2015. Since Ocorian’s carve-out, Ocorian has gone on a phenomenal M&A journey, acquiring 14 businesses across the UK, Luxembourg, the Netherlands, the US and Asia. The strategic purchases of Estera and Nordic Trustee have helped grow Ocorian into new geographies and verticals to today serve over 8,000 clients globally from over 20 offices – making it a multi-jurisdictional corporate service and fund administration leader of scale.
The firm’s M&A kicked off in 2017, with three acquisitions taking place in just six months. This initial cadence gave way to integration before the transformative acquisition of Estera in 2020, which made Ocorian the seventh largest corporate, funds and trust player in the world by revenue. Joining forces was mutually beneficial, with Ocorian clients benefiting from Estera's established Americas presence (Bermuda, BVI and Cayman), and Estera clients able to leverage Ocorian's strong links to the Middle East and Africa.
The firm has made nine additional acquisitions since Estera, each adding further scale with the acquisition of Nordic Trustee in 2021 providing access to the fast-growing Nordic bond and direct lending markets.
Despite its rapid expansion, Ocorian maintains a reputation as a "good home" for acquired businesses – a distinction that has become a competitive advantage in the M&A marketplace. Examples include Newgate and Nordic Trustee, whose founders now head global service lines, and A-Pass in Hong Kong, which maintained its leadership team post-acquisition.
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