Harvest Acquisition: Key Details, Impact, and What Comes Next

Montagu Private Equity has acquired Harvest, a leading provider of software solutions, from Five Arrows Principal Investments. This strategic move, which includes TA Associates as co-controlling shareholders, aims to bolster Harvest's international growth and solidify its position in the wealth management software sector. The acquisition underscores the industry's focus on expanding digital solutions for financial services.

What Is Harvest?

Founded in 1989, Harvest specializes in developing software solutions tailored for wealth management professionals. Its core products include financial planning tools and portfolio management systems designed to streamline advisory services. A key differentiator for Harvest is its commitment to innovation, consistently integrating advanced technologies to enhance user experience and operational efficiency. This focus on cutting-edge solutions positions Harvest as a leader in the wealth management software sector.

Who Acquired Harvest?

Montagu Private Equity is a prominent private equity firm specializing in essential sectors such as Healthcare, Financial Sector Services, Critical Data, Digital Infrastructure, and Education. Known for its expertise in carve-outs, Montagu has completed over 30 since 2002. The firm collaborates closely with management teams to unlock potential and drive growth. Montagu's commitment to responsibility, including climate action and diversity initiatives, underscores its influential position in the private equity industry.

When Was Harvest Acquired?

Montagu Private Equity acquired Harvest on August 27, 2024. This acquisition aligns with the growing trend of private equity firms investing in technology-driven financial services. The timing is significant as it follows a period of substantial growth and international expansion for Harvest under Five Arrows' partnership. This move marks a new phase in Harvest's strategic plan, "the Spirit of Conquest," focusing on further international development and solidifying its position in the wealth management software sector.

Why Was Harvest Acquired?

• Market Expansion: The acquisition of Harvest by Montagu Private Equity is strategically aimed at entering new markets. Harvest has already established a strong presence in France and expanded into Italy and Luxembourg. The new partnership will support Harvest's ambitious strategic plan, "the Spirit of Conquest," which focuses on further international development.
• Technology Integration: Montagu benefits significantly from Harvest's advanced technology. Harvest is a leading fintech company in France, providing a SaaS software platform that supports the entire customer journey in wealth management. This includes client management, wealth and tax planning, data and investment strategy, and subscription services. The integration of Harvest's technology will enhance Montagu's portfolio and drive further growth.
• Competitive Advantage: The acquisition strengthens Montagu's position against competitors by leveraging Harvest's unique market position. Harvest is a primary reference SaaS solution for the wealth management industry in France, with a differentiated product offering and approximately 50% market share. The partnership with TA Associates and Montagu, who have deep industry experience and resources, is expected to drive further growth and performance acceleration, solidifying their competitive edge.

Acquisition Terms

• Acquisition Price: The acquisition price was not publicly disclosed.
• Payment Method: The payment method was not specified.
• Key Conditions or Agreements:
  • TA Associates and Montagu Private Equity will become co-controlling shareholders of Harvest.
  • The transaction has received relevant regulatory approvals.
  • The new partnership aims to support Harvest's strategic plan, "the Spirit of Conquest," focusing on further international development.
  • Key executives from TA Associates and Montagu Private Equity will join Harvest’s supervisory board.

Impact on Harvest

The acquisition of Harvest by Montagu Private Equity and TA Associates has led to significant changes in the company's operations and management. Key executives from both firms, including Maxime Cancre and Patrick Sader from TA, and Antoine de Peguilhan and Guillaume Jabalot from Montagu, have joined Harvest’s supervisory board. This new leadership aims to drive Harvest's strategic plan, "the Spirit of Conquest," focusing on international development and solidifying its position as a European leader in wealth management software.

Regarding product offerings and services, the partnership is expected to enhance Harvest's capabilities, allowing for both organic growth and acquisitions. This strategic move aims to expand Harvest's reach and improve its software solutions, benefiting its extensive customer base. While specific employee reactions are not documented, the leadership's optimism suggests a positive outlook. Customers can anticipate improved services and innovative solutions, reflecting the company's commitment to excellence. For founders considering business transitions, tools like Sunset can assist in managing these processes compliantly and efficiently.