Invesco Sells intelliflo to Carlyle; U.S. Division to Spin Off as RedBlack

Invesco has sold its financial advice and investment management provider, intelliflo, to Carlyle Group for $135 million. The deal includes intelliflo's U.S. subsidiary, RedBlack, which offers SaaS-based portfolio rebalancing tools and portfolio management software for registered investment advisors. RedBlack will operate as a standalone company with a new management team. The deal is expected to close in Q4.

Investment management company Invesco has sold its financial advice and investment management provider, intelliflo, to Carlyle Group for $135 million. The deal includes intelliflo's U.S. subsidiary, RedBlack, which offers SaaS-based portfolio rebalancing tools and portfolio management software for registered investment advisors. RedBlack will operate as a standalone company with a new management team. The deal is expected to close in Q4 [1].

Carlyle Group will acquire intelliflo for $135 million at closing, with another potential $65 million in future earnouts. The deal includes intelliflo's U.S. subsidiary, RedBlack, and its other U.S.-based subsidiaries: i4c, a cashflow modeling offer, Jempstep, a robo-advisor, and Portfolio Pathway. All of these U.S.-based subsidiaries will operate as a standalone company called RedBlack, run by a separate management team from the U.K. and Australian businesses. Bryan Perryman, who had been Chief Operating Officer of intelliflo, will be CEO of the newly formed RedBlack [1].

Nick Eatock, the founder of intelliflo, will remain CEO of the business that will continue under the name intelliflo, focusing on the U.K. and Australian operations. Carlyle will act as a partner in carving out the businesses and establishing the new leadership teams. The global private equity player is funding the deal through a $3.5 billion fund called Carlyle Europe Technology Partners [1].

The deal underscores Carlyle's strategy of consolidating fintech assets to drive innovation and scale, aligning with its broader fintech consolidation wave. The acquisition of intelliflo reflects Carlyle's interest in the creator economy and related sectors, as seen in its recent minority investment in Entertainment 360 [2].

The acquisition of intelliflo by Carlyle Group positions the private equity firm as a key player in the digital transformation of financial advisory services. The deal aligns with Carlyle's focus on high-growth, technology-enabled sectors and reflects its history of over 50 financial services transactions [2].

For investors, the Carlyle-Intelliflo deal highlights the potential of fintech consolidation as a value driver. Firms that can integrate complementary technologies, reduce operational costs, and scale efficiently are likely to outperform. Key indicators to monitor include the performance of Invesco, which offers insights into market sentiment toward wealth management software, and tracking consolidation trends to identify undervalued targets and sector momentum [2].

The acquisition signals a shift in how wealth management software is developed and deployed, with traditional players being outpaced by agile fintechs that prioritize user experience and technological agility. Intelliflo's open architecture, which allows seamless integration with third-party tools, positions it as a critical enabler for independent financial advisers seeking to compete with robo-advisors and big banks [2].

Moreover, the deal reflects the growing importance of ESG (Environmental, Social, and Governance) integration in fintech. Carlyle's ESG-focused investments, such as its $1.3 billion stake in Trucordia, an insurance brokerage, demonstrate how private equity is aligning fintech growth with sustainability goals. For Intelliflo, this could mean embedding ESG metrics into its platforms, helping advisers meet client demand for sustainable investing [2].

In conclusion, Carlyle's acquisition of Intelliflo is more than a strategic play—it's a harbinger of how private equity is reshaping fintech through targeted consolidation and technology-driven value creation. As the wealth management sector continues to digitize, firms that can adapt to these trends will thrive. For investors, the lesson is clear: the future belongs to fintechs that combine innovation with operational discipline, and private equity is the catalyst accelerating this transformation [2].

References:
[1] https://finance.yahoo.com/news/invesco-sells-intelliflo-carlyle-u-144507364.html
[2] https://www.ainvest.com/news/carlyle-strategic-acquisition-intelliflo-implications-future-wealth-management-software-2508/