We are proud of the partnerships we have built with management teams to help create value.
Financial Engines: Strategic Leadership
Financial Engines needed to redefine and deploy major modifications in the business model and strategic direction of the Company.
With FTV Capital's guidance, the Company recognized the need to build upon the success of its retirement plan investment advisory services in order to further employee adoption and drive customer retention at key accounts. Led by FTV Capital's representative on the Financial Engines board, the Company successfully transitioned its primary business. It is now offering comprehensive asset management services to increase penetration of defined contribution plans sponsored by large U.S. corporations.
Financial Engines introduced its 401 (k) asset management service in September 2004, and has deployed its offering at some of the largest employers in the world, growing assets under management in managed accounts to more than $50 billion at the end of 2011. In March 2010, the company went public (NASDAQ GS: FNGN), earning an attractive return for FTV investors and Financial Engines management and employees.
KVS: Aggressive Business Development for Market Leader
At the 2002 FTV Capital Annual Partner Conference, our strategic investors helped identify the rapidly escalating need for email storage, archiving and retrieval. Our investment team performed an extensive analysis of the market space and identified U.K.-based K Vault Systems ("KVS") and their Enterprise Vault product as a market leader with a compelling product and technology offering. Because the financial services vertical was a critical customer target for KVS, the company was highly attracted to FTV Capital as an investment partner.
After investing in KVS in August 2003, we introduced the sales team to potential customers within the Global Partner Network. These efforts resulted in six important commercial relationships, which catapulted the company's sales efforts and brand awareness. KVS also leveraged the experience of the firm's investment team to prepare the Company for acquisition.
Thirteen months after the investment, in September 2004, VERITAS Software purchased KVS for $225 million.
Actimize: Leveraging our Global Partner Network
Prior to our investment in Actimize in January 2004, we worked closely with members of our Global Partner Network to understand the impact of changing anti-money laundering regulations and the need for improved solutions. After an extensive review of the market, we invested in Actimize, a provider of operational risk management enterprise solutions for financial institutions.
The FTV team worked closely with Actimize to identify important risk management executives across the financial services industry. By tapping into our Global Partner Network, we were able to connect Actimize with these industry decision-makers-relationships that resulted in commercial contracts with 10 of our strategic investors. These contracts created significant revenue and market traction, and helped propel Actimize into a market leadership position.
Actimize was acquired by NICE Systems (NASDAQ:NICE) in July 2007 for approximately $280 million.
MedSynergies: Support for Product Strategy Shift
The management of MedSynergies, a health care payments/transaction processing company, was assessing a variety of new product directions. The company was being impacted by changing market conditions and limited market opportunity for its existing product, a bundled revenue cycle management offering.
The FTV board members spent considerable time with the management team, researching and working through the viability of several new strategic options. The team ultimately supported a new business model which unbundled the existing solution to create a repeatable, profitable offering based on transaction fees.
MedSynergies has experienced significant market traction and growth under the revised business model created by its management team and FTV Capital and recently completed a joint venture with Texas Health Resources, the ninth largest not for profit hospital system in the U.S., creating a significant increase in revenue. The 10 year contract offers physicians a range of office management and other business services to support their practices.
ExlService: Leveraging our Global Partner Network
A major FTV strategic investor was a pipeline prospect for EXL Service, an offshore Business Process Outsourcing provider, and introduced the Company to FTV. Key executives within our Global Partner Network helped us validate EXL's offshore model, determine the importance of India as a strategic location, and ensure that the company was viewed as a high-quality service provider by its customers.
In November 2002, FTV, the EXL management team, and another investment firm acquired the company. FTV worked closely with the company's management team, helping to redefine the company's marketing efforts and to secure LP customer relationships.
EXL went public in October of 2006 (NASDAQ GS: EXLS) earning a significant return on investment for FTV investors and the EXL management team.
Verus: Domain Expertise and Corporate Development Support
The management team of Verus and FTV partnered to form an electronic payment processing service provider. The Verus team was initially attracted to FTV as a partner because of its transaction processing expertise and key relationships within the sector.
FTV worked with the Verus management team to shape and execute the company's build-up acquisition strategy. In only 18 months, the team identified, evaluated, structured and closed five significant acquisitions. These efforts helped Verus quickly create a profitable business with strong organic growth.
In February 2006, Verus was acquired by the Sage Group PLC for approximately $325 million.
PowerShares: Advisory Board and Asset Management Domain Expertise
"FTV Capital has a clear strategy for how to add value to portfolio companies and they execute it well. I've relied on their experience and relationships to help secure strategic investors, recruit talent, line up partners, and close major deals."
President/CEO, Financial Engines
"It is hard to find true added value investors. My experience with FTV Capital created that extra dimension, helping to open doors and close business."
CEO, KVS Inc.
(acquired by Veritas 9/04)
"FTV Capital has brought more than just financial capital to Actimize; the team offers extensive contacts and insight deep within the global financial services industry and is willing to make the extra effort to create connections for us that have led to meaningful customer relationships."
(Acquired by NICE Systems July 2007)
"FTV Capital deploys a significant investment in financial and leadership capital, partnering with management teams to realize their professional objectives. Access to leadership within their firm and strategic investor institutions provides a competitive advantage to a portfolio company."
John R. Thomas
"Providing capital, mentoring our senior executives on Greenfield projects, serving as EXL's brand ambassadors in industry leadership forums, actively participating in operational reviews with key clients-these are just some of the value-added contributions we get from our FTV Capital team."
Co-Founder, President, EXL Service