Financial Technology Partners
Technology is developing at a quick pace, which has caused a substantial upheaval in the financial business. As a result, the financial services industry has entered a new era known as financial technology, or fintech. We will discuss the vital role Financial Technology Partners (FT Partners) play in influencing the direction of finance in this blog article.
Overview of Partners in Financial Technology 
Financial Technology Partners, or simply FT Partners, is a leading global investment banking company that specializes mainly in the financial technology industry1. FT Partners, which was founded in 2002 by Steve McLaughlin, a former senior investment banker at Goldman Sachs, has led the way in offering financial and strategic advice services to the fintech sector.
Overview of the business
The business strategy of FT Partners blends the profit-driven nature of private equity with investment banking consulting services, leading to fees that frequently increase as a percentage of the sales price they achieve for their customers. Even by Wall Street standards, the fees that FT partners demand are considered outrageous due to their magnitude and structure. FT Partners’ formula is to identify undervalued firms, engage in atypical fee arrangements, and only act as an agent for sellers. Dealogic claims that the firm’s $250 million fee from the sale of a client in 2019 is the largest advisory charge ever recorded. In addition, McLaughlin personally invests in the businesses he counsels.
Although McLaughlin has said that personally investing in his client will align his interests with theirs, this has raised concerns about a conflict of interest. According to McLaughlin, the firm’s primary focus is on being small, nimble, and specialized, hence it generally has no interest in working on huge agreements valued over $20 billion for significant customers.
Since FT Partners was a little, unheard-of company at first, it was difficult to draw in talent, which contributed to its delayed growth. For several years, McLaughlin was the lone managing director of the company and was responsible for overseeing all transactions. The company has only been able to bring on top bankers in recent years. McLaughlin claimed that despite the company’s quick growth, he is still somewhat involved in every transaction.
The company hasn’t been required to pitch clients in over ten years because it has drawn some significant fintech firms. It only answers 1-3 of the hundreds of calls it receives each month from fintech companies because it wants to concentrate on providing each client with its undivided attention.
Services FT Partners Provides
FT Partners provides an extensive array of services specifically designed to meet the demands of the fintech industry. Among these services are:
Providing advice on buy-side and sell-side mergers and acquisitions (M&A) transactions to assist businesses in expanding or strengthening their market positions.
Finance Raising: Helping businesses obtain finance at different phases, from huge capital raising to seed rounds.
Strategic advisory services include market trends, valuation, and prospects for strategic expansion.
Providing companies with guidance through the intricate process of going public or combining with a special purpose acquisition company is known as IPO and SPAC advisory.
FT Partners’ Effect on the Fintech Sector
Some of the biggest transactions in the fintech industry have been made possible thanks in large part to FT Partners. Because of their extensive industry knowledge and experience, they have been able to carry out complicated deals that have influenced the direction of the sector. Notable transactions include providing advice on VeriFone’s IPO and the Royal Bank of Scotland’s $525 million purchase of Lynk Systems Inc.
In summary Financial Technology Partners
FT Partners and other specialized investment banks are playing a more and bigger role as the fintech industry develops and grows. Their knowledge of the industry enables them to offer businesses navigating the fintech landscape unmatched guidance and services.
FAQ
Financial Technology Partners: What is it? A fintech-focused investment banking company, Financial Technology Partners provides both financial and strategic consultancy services.
Who established FT Partners? Former senior investment banker at Goldman Sachs, Steve McLaughlin, created FT Partners.
What services are provided by FT Partners? FT Partners provides services that are especially suited to the fintech sector, including capital raising, M&A consulting, strategic advisory, and IPO and SPAC advisory.
Can FT Partners assist my business in going public? FT Partners offers consulting services for SPACs and IPOs to help businesses navigate the process of becoming public.
What effect has FT Partners had on the fintech sector? FT Partners has played a pivotal role in enabling noteworthy transactions within the fintech domain, hence augmenting the sector’s expansion and molding its trajectory.