The transaction is designed to boost the position of intelliflo in the UK and accelerate its Australian growth. As part of the deal, US subsidiaries of intelliflo will be set up as a standalone business called Redblack.

Carlyle, the US private equity house, has acquired UK wealth advisor software firm intelliflo from New York-listed Invesco for up to $200 million. 

The transaction includes intelliflo’s US-based subsidiaries, RedBlack, a provider of software-as-a-service-based portfolio rebalancing tools, and intelliflo Portfolio, a portfolio management software solution for US registered investment advisors.

The purchase price – $135 million at closing – is expected in the fourth quarter of this year subject to certain closing conditions, and up to an additional $65 million in potential future earn outs, Carlyle said in a statement yesterday.

As part of the deal, intelliflo’s US-based subsidiaries will be established as a standalone business called RedBlack, run by a separate management team, Carlyle said. The CEO of RedBlack is Bryan Perryman.

Founded in 2004 and headquartered in London, intelliflo offers a software platform used by more than 30,000 professionals at about 2,600 advisory firms. In all, they support around £450 billion ($606.8 billion) in client assets. intelliflo’s platform delivers client relationship management, financial planning, client onboarding, compliance workflows, and reporting functionality.

The transaction aims to strengthen intelliflo’s position in the UK and accelerate its growth in Australia.

This separation will allow both businesses to better serve and focus on their existing customers and markets. intelliflo will focus purely on delivering market-leading software and innovation for the UK and Australian markets, and RedBlack will focus solely on delivering for RIAs and other financial advisors in the US. 

Carlyle will support the carve-out of both businesses from Invesco and will partner with both leadership teams to execute their plans.

Equity for the investment will be provided by Carlyle Europe Technology Partners ("CETP") V, a €3 billion ($3.5 billion) fund which invests in technology companies across Europe. The CETP team’s current and recent investments include SER Group, CSS, SurePay, and Calastone. (In July, SS&C Technologies, the Nasdaq-listed financial software and solutions group, agreed to buy Calastone, a global funds network and technology solutions provider to the wealth and asset management industry.)

Evercore served as financial advisor to Invesco and HSF Kramer acted as legal advisor. Altman Solon, PWC, Oliver Wyman and Ringstone conducted due diligence on the acquisition. Gibson Dunn acted as legal counsel to Carlyle.