Advice-tech provider Twenty7tec has secured £16.5m backing from private equity firm BGF to drive “significant growth and expansion” within the UK.
Twenty7tec was founded in 2014 by now chief executive James Tucker. The business is headquartered in Bournemouth.
Its platform aims to streamline the entire mortgage journey, from initial product search and sourcing through to application submission and completion.
In June 2022, the business bought Bluecoat Software to allow it to break into the wealth market.
From this acquisition, it inherited the original Finplan CRM solution. The business upgraded this in April, adding an array of new features and functionality.
Around 16,000 mortgage, protection and wealth advisers use the Twenty7tec platform daily.
Recent investment in Finplan and digital marketing solution Communicate have significantly extended the company’s integrated solutions in both the mortgage and wealth advisory markets.
BGF’s investment will enable Twenty7Tec to accelerate its product development roadmap, enhance its technology infrastructure and explore new market opportunities.
Funding will also support the company in further expanding its team of industry experts, ensuring it continues to deliver “exceptional service and innovation” to its growing customer base.
As part of the investment, Angela Williams has joined the board as non-executive chair, following an introduction from BGF’s Talent Network.
She brings a wealth of experience in founding, scaling and exiting other tech-focused businesses, with senior executive roles for companies such as British Airways, Centrica and Land Securities.
She will support the team in refining and executing its growth strategy.
Commenting on the news, Tucker said the tech firm’s journey is “far from complete”.
“We still see too many advisers suffering from not having access to the right tools to do their jobs, and too many providers unable to access real-time data that helps them understand underlying movements in market dynamics, and adjust their own strategy accordingly. There is much more work to be done.”
He said the investment from BGF allows Twenty7tec to continue to invest further in delivering technology that makes a “real difference” to all participants in this market.
“Ultimately, we believe it will enable us to play an increasing role in helping millions of customers continue to receive the right advice for their circumstances – an opportunity that we are excited by, and a responsibility that we take our role in very seriously,” he added.
“After an exhaustive search, we have found the perfect investment partner in BGF, who understand our business and the market in which we operate, and are as excited by the opportunities in front of us as we are.
“With BGF as our partner, we will move quickly to further enhance the talent within our business, invest in our products and continue to seek opportunities for inorganic growth that are complementary to our existing business.
“It’s a hugely exciting time for everyone associated with Twenty7tec, and we’re very pleased to have the support of Angela in the role of non-executive chair and look forward to benefitting from her wealth of experience in helping businesses to scale.
“I’m proud to lead the business into the next stage of its evolution.”
The deal was led by Duncan Wade, Cat Dilloway and Harry Kernick – investors in BGF’s Reading team.
Wade will also join the Twenty7tec board.
He said: “Twenty7tec’s track record of disrupting the advice technology market, combined with its ability to effectively scale is testament to the hard work and tenacity of James and his team.
“With high recurring revenue, low customer churn and a series of exciting opportunities for value creation in front of the team, we’re excited for what this investment will mean for the business.
“The impressive growth that Twenty7tec has already achieved since start-up 10 years ago has been underpinned by a team who are passionate about delivering the best possible outcome for users of their technology.
“We are genuinely thrilled to be backing them and have high hopes for the company’s future.”
