Hg is to invest in FE through its Mercury 2 fund, although terms of the transaction were not disclosed.
Portfolio Adviser understands the investment will see Hg partner FE and Zurich-based fund ratings firm Fundinfo. Hg invested £3.1m in the European rival to FE in 2016 through its Mecury fund. In March, Fundinfo acquired Luxembourg-based fund data management business F2C.
The private equity firm said its investment in FE is a result of the research provider’s position in the wealth and asset management software and data sector, as well as a strong management team led by Neil Bradford (pictured).
Sebastien Briens, partner at Hg, said: “We have been following FE for a number of years, and have been impressed by the strength and depth of its data, products, team and vision.
“We are very pleased to partner with Michael, Craig and Neil in the next stage of growth for the business.”
Michael Holland, co-founder of FE, said: “Data is at the foundation of everything we do and Hg has a deep understanding of the fund data space. I am confident that this partnership will hugely benefit our clients.”
The Mercury 2 fund launched last year and invests primarily in tech businesses. FE represents the fund’s third investment after DADA, an Italian business providing online hosting services for SMEs, and MediFox, a medtech business focussed on software solutions for outpatient and inpatient providers.
