Avaloq boss Francisco Fernandez is stepping aside. The move comes nine months after a private equity sale of a major chunk of the Swiss banking software firm, which could list its shares as soon as 2020.

The Zurich-based banking software firm said operating chief Juerg Hunziker will replace long-standing CEO Francisco Fernandez from January. Ferdandez, a co-founder of Avaloq in 1996 who has run the firm since 2000, will reduce his role to that of chairman. 

The move reflects big changes at Avaloq, which could list its shares as soon as 2020, according to its new 45 percent shareholder, New York-based private equity Warburg Pincus. Hunziker will chase potential acquisitions, expand internationally, and lead the firm's 2,000-strong workforce.

 «Juerg and myself are a well attuned team, and with him as the CEO, we have found the perfect setup to drive Avaloq’s growth. Juerg knows how to consequently execute a strategy,» Fernandez said in a statement.

Going Public

The move comes nine months after Warburg Pincus entered the scene. As part of the deal, Fernandez added the chairman's job to his remit earlier this year. The firm said the CEO change is a bid to reinforce its leadership as well as draw clearer lines around who is responsible for what.

«As Avaloq is about to enter the next phase in accelerating growth – both organically and through potential acquisitions – the company is implementing a new governance structure that strengthens both its operational and strategic management,» the firm said. 

Warburg Pincus's initial 35 percent stake, after years of pursuing Avaloq, swelled to 45 percent in November after the exit of another shareholder, Swiss bank Raiffeisen. The firm told finews.com it expects to take Avaloq public as soon as 2020.

Sungard Veteran

Hunziker is a well-known executive in banking and software circles: the former UBS executive founded U.S. software firm SunGard's operations in Europe, where he was head of global trading, risk and private banking software and services until 2015. Since 2016, Hunziker has been Fernandez's deputy as well as markets chief.

The former banker seems to have proven himself as the far more public face of Avaloq last year, when the firm found itself fighting on various fronts. Avaloq is attempting to expand its business process outsourcing, or BPO, business into a key revenue contributor for the firm, further the reach of its core banking system Avaloq banking suite, enter the U.S. market, develop new fintech products and build an open platform, and reach into new market segments such as external asset managers.

Today, Avaloq boasts roughly two-thirds of its revenue from software as a service and business process income, as opposed to selling its software outright. «Avaloq will build on this business model that provides long-term predictable revenues and will continue to consequently drive the extension of its network of service centers,» the firm said.

Struggle to Let Go

In stepping aside, Fernandez has taken a first step with what other financial and fintech founders such as Jan Schoch struggle with: letting go. This is necessary since the firm's new private equity shareholder wants to make Avaloq capital market-fit for a listing as soon as two years from now.

Fernandez will be responsible for the Avaloq's long-term strategy as chairman, while Hunziker will roll out its strategy and lead its 2,000 staff. The CEO's particular focus in coming months will be on expanding internationally, as well as integrating any acquisitions.