Financial Technology Partners
| Company type | Private |
|---|---|
| Industry | Investment banking, Financial services |
| Founded | January 1, 2002 in San Francisco, United States |
| Founder | Steve McLaughlin |
| Headquarters | San Francisco , United States |
Area served | United States, United Kingdom |
Key people | Steve McLaughlin (Founder) |
| Products | Investment banking advisory services |
| Owner | Steve McLaughlin (private ownership) |
Number of employees | 225 (2021) |
Financial Technology Partners (FT Partners) is a specialized American boutique investment bank focused exclusively on the fintech industry. Its headquarters are located in San Francisco, with additional offices in New York City, Miami, and London.
History
Established in 2002 by Steve McLaughlin, who previously served as Global Head of Financial Technology investment banking at Goldman Sachs, FT Partners originated from McLaughlin’s apartment in San Francisco. At a time when fintech was still nascent and largely ignored by both traditional financial institution bankers and technology bankers due to the complexity and size of deals, McLaughlin identified an opportunity. The early days were marked by limited resources and reliance on unpaid interns, with the firm facing difficulties securing transactions following the Dot-com crash.
A pivotal moment occurred in 2004 when FT Partners facilitated the sale of Lynk Systems Inc. to the Royal Bank of Scotland for $525 million, significantly outbidding a previous $150 million offer. This deal cemented FT Partners’ standing as a leading advisor within the fintech space.
Another significant milestone was FT Partners’ advisory role for Verifone during its 2005 initial public offering (IPO). Unlike conventional IPOs managed by major banks, FT Partners independently managed regulatory filings, valuation assessments, and underwriter selection. This strategy preserved confidentiality and optimized Verifone’s valuation, resulting in a $1.25 million advisory fee compensated in shares.
By December 2021, the firm had grown to approximately 225 employees and reported revenues of $600 million, valuing FT Partners at $2 billion. The company remains privately held by McLaughlin, who has expressed no intention to pursue an IPO or sell the firm.
Business overview
FT Partners operates with a hybrid model combining investment banking advisory services with private equity-style profit incentives, often structuring fees that represent a substantial percentage of transaction values. The firm is known for its assertive fee arrangements, which are considered aggressive even within Wall Street norms. It specializes in representing sellers of undervalued companies and negotiates distinctive fee agreements tailored to each deal. In 2019, FT Partners achieved a record advisory fee of $250 million on a single client transaction according to Dealogic data. Founder McLaughlin also makes personal investments in client companies to align interests, despite potential conflict-of-interest concerns. The firm prioritizes agility and expertise by focusing on transactions valued below $20 billion.
Growth was initially slow due to challenges in recruiting experienced professionals; for its first ten years, McLaughlin was the sole managing director personally overseeing every deal. More recently, FT Partners has expanded its senior leadership team while maintaining McLaughlin’s involvement in all transactions. Having secured relationships with key fintech leaders, the firm no longer actively solicits business but instead fields hundreds of inbound inquiries monthly, selectively engaging with only one to three clients to ensure focused attention.
Notable deals
- Provided advisory services for Tradescape’s $280 million sale to E-Trade in April 2002.
- Advised SoundView Technology Group during its $321 million acquisition by Charles Schwab in November 2003.
- Guided Mercury Payment Systems through its purchase by Vantiv in May 2014.
- Facilitated Heartland Payment Systems’ $4.5 billion acquisition by Global Payments in April 2016.
- Assisted CardConnect with its $750 million sale to First Data in May 2017; this fee arrangement faced disputes from First Data executives.
- Supported Cayan’s $1 billion acquisition by TSYS in January 2018.
- Advised GreenSky on its initial public offering in May 2018.
- Managed Assurance IQ’s $2.35 billion sale to Prudential Financial in September 2019; notably, Assurance IQ was a three-year-old startup without venture capital backing.
- Coordinated a financing round for Revolut in July 2021 that increased its valuation from $5.5 billion to $33 billion.
- Advised Circle on its $4.5 billion SPAC merger with Concord Acquisition Corp in July 2021; FT Partners reported fees approximating 9% of the deal value, exceeding $400 million.