Kiwi Wealth's online trading site Hatch, has been sold to global wealth management platform FNZ
Hatch provides New Zealanders with access to US sharemarkets. Photo: 123RF
Hatch is a direct-to-consumer digital investment platform, serving more than 130,000 users, that provides New Zealanders with access to US sharemarkets.
More than $2 billion has been transacted on the platform since it was founded in 2018.
Hatch co-founder and general manager Kristen Lunman said the acquisition means it now had the necessary backing to scale up at pace.
"Hatch was the first to bring Kiwis easy and affordable access to the US share markets and fractional investing.
"In the future, with FNZ's support, we intend to offer our customers further options that put their money to work, provided by the same team and community they are familiar with. FNZ has the resource, appetite, and global footprint to take Hatch to the next level."
FNZ New Zealand managing director James McDonnell said what Hatch had achieved over the past three years since its inception was admirable.
"The business has reached a logical point in its lifecycle to pursue ownership transition, and FNZ now has the capability and appetite to build on these foundations in order to achieve a step-change in their growth trajectory.
"As a business founded in New Zealand, we are delighted to have the opportunity to support a thriving and entrepreneurial home-grown start-up that allows its growing customer base to invest in companies they believe in," McDonnell said.
FNZ was founded in Wellington in 2004.
The agreement with Hatch will see the investment platform remain as an autonomous business unit, FNZ said.
FNZ said it would look to provide further investment into Hatch and access to FNZ's infrastructure and technology.
Kiwi Wealth acting chief executive Rhiannon McKinnon said it was proud to have "incubated" Hatch and see it grow.
"We recognise Hatch's appetite for expansion following the success of the incubation period, and this new owner will enable it to reach its full potential in the global arena.
"Every Kiwi deserves a trusted financial partner. The sale of Hatch will enable Kiwi Wealth to further invest and innovate in the advice space to help Kiwi make better financial decisions in the long term."