Intelliflo: Scaling a strategic SaaS fintech champion - Hg

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If you’d like to know more please get in touch at info@hgcapital.com

Why were we interested in Intelliflo?

Established in 2004, Intelliflo is a leading UK Software as a Service (‘SaaS’) provider of front and back office solutions for financial advisers. Intelligent Office (‘iO’), their cloud-based product suite, is regarded as the backbone of the UK wealth sector, supporting financial advisers across the full advice and financial planning journey.

The UK IFA segment had historically been low-tech and reliant on highly manual processes, but several commercial and regulatory catalysts were driving professionalisation and creating a need for more technology support. The most significant was the Retail Distribution Review (‘RDR’) regulatory change in 2013, which occurred at the same time as Hg’s investment.

Within this context, Intelliflo’s single instance, multi-tenant SaaS platform enabled the iO product to be significantly more scalable and future proof than the legacy on-premise providers, putting it in a strong position to gain market share.

Intelliflo serves a wide customer base of more than 14,000 IFAs, mortgage advisors and administrators, primarily in the SME space, and is one of the UK’s fastest-growing SaaS companies of scale. Headquartered in Kingston, South London, Intelliflo employs c. 170 people.

Building best-in-class operations

Know-how: building the team

In 2014, Hg supported a management expansion and founder transition at the company.

Nick Eatock
Intelliflo’s founder became Exec Chairman, maintaining his deep knowledge and passion for the business was vital in stewarding a successful management expansion.

Hamish Purdey
Hamish became CEO of Intelliflo in 2014, bringing considerable SaaS and technology operations experience, which have been very important to delivering the growth plan.

Rob Walton
Arriving as COO in 2015, Rob brought best in-class technology operations practices as a result of his experience at Ffastfill (a Cloud FinTech vendor).

Stretch: professionalising systems

The new team rolled out improved systems across sales, marketing, account management, support and R&D. This best-in-class SaaS automation led to quicker time to market for new products and greater data-driven customer and end-market insight.

Grow: accelerating revenue growth

With new focus, Intelliflo successfully accelerated recurring revenue growth from 15 to 23%.

Hg also supported Intelliflo with pricing and proposition development, whilst also being actively involved in recruiting and scaling the sales organisation. With a highly-recurring revenue model, Hg also actively invested in sales & marketing to gain market share, helping Intelliflo to become a champion in this sector.

Hg also supported Intelliflo with pricing and proposition development, whilst also being actively involved in recruiting and scaling the sales organisation. With a highly-recurring revenue model, Hg also actively invested in sales & marketing to gain market share, helping Intelliflo to become a champion in this sector.

Supporting strategic positioning

Industry-leading technology

Intelliflo developed its position at the heart of UK investment flows by investing in R&D and the roll-out of a feature-packed single instance SaaS product to support front and back-office advice processes.

Strategic relationships

Relationships with key strategic parties in the UK and US wealth sector were built – including both technology vendors and financial services groups. This facilitated a successful exit process based around Intelliflo’s central position in the distribution of financial products in the UK.

The exit

Confirming the strategic nature of Intelliflo’s position at the heart of the UK advice market and financial flows, Intelliflo was acquired by Invesco Inc, a leading global asset manager, in June 2018.

Invesco saw the strength of Intelliflo’s technology, the position in the UK market and associated customer/end client base and the management team as critical to the future of their UK and global adviser offering.

The overall exit represented a 4.7x CoC and 39% IRR return over the investment period.

We would like to thank Hg for all their support since 2013 in getting us to this stage in our development. In a comparatively short space of time, we have built one of the UK’s largest pure‑play Software-as-a-Service businesses, and we now look forward to expanding our business, taking our leading technology into new markets across the globe.

Hamish Purdey

Chief Executive Officer at Intelliflo

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