Allianz X, an investment subsidiary of insurer Allianz, plans to make a C$53.5m ($42.2m) investment in Canada-based financial services technology provider Purpose Financial.
The deal, which is subject to regulatory approval, will see a member of Allianz X join the company’s board of directors.
Founded in 2013, Purpose Financial has built three business units covering separate areas of the financial services sector.
Through its Purpose Investments subsidiary, the company offers an online investment platform for entrepreneurs and small and medium-sized enterprises.
The company’s Thinking Capital unit provides financial insights and loans for small businesses, while Purpose Advisor Solutions helps independent wealth advisors and portfolio managers to manage their business operations.
The funding will be used to speed up Purpose Financial’s growth and expand its product development across its business units.
Alexander De Kegel, deal and project manager at Allianz X, said: “Purpose Financial is a disruptor in the Canadian financial services landscape, having established a unique position in its market, particularly with its digital platform for financial advisors.
“The company is also well-positioned for further growth in asset management and SME lending. We see various opportunities to capitalize on joint business opportunities going forward, for example in developing and distributing retirement solutions and investment products.”
Purpose Financial received an undisclosed amount of funding from Omers Platform Investments, an investment arm of pension fund Ontario Municipal Employees Retirement System, in 2017.
Private equity firm TorQuest became a shareholder in Purpose Financial when the latter acquired the former’s portfolio company Thinking Capital in 2018.