Financial Services
Long-term themes driving activity in the financial services sector include:
- Digitization of financial services – both internal and customer-facing – is a competitive necessity.
- Retirement demographics are causing increased demand for consumer-friendly, low-cost asset management solutions and services.
- Opportunity for technology-enabled origination, distribution and underwriting businesses to catalyze innovation in financial services.
- The “race to the bottom” in financial transaction fees is creating demand for innovative financial instruments that generate market share and revenue for financial services firms.
- Growing market opportunity for independent banking and capital markets businesses as global financial financial institutions retrench.
- Consumerization of financial services, including banking, insurance and wealth management, is driving further innovation.
250%+
AGGREGATE REVENUE GROWTH
from investment to exit for financial services investments
$1TN+
ASSETS UNDER CONTRACT (as of Q4 2018)
at our very first company, Financial Engines
- Investment Date: 2020
- Status: Private
- Headquarters: London, UK
- Website: boughtbymany.com
- FTV Contacts: Mike Vostrizansky, Brad Bernstein, Daniel Kim
Bought By Many
Tech-enabled pet insurance MGA with a differentiated value proposition stemming from its breadth of products, quality of coverage and support, and efficient claims processing.
Investment Theme
Pet insurance is a rapidly growing market with premium growth driven by rising product adoption and advancements in pet treatment.
- Investment Date: Investment signed; closing and funding pending regulatory approval
- Status: Private
- Headquarters: Dublin, Ireland
- Website: centaurfs.com
- FTV Contacts: Kyle Griswold, Brent Fierro, Daniel Kim
Centaur
Fund administrator and regulatory services provider for the alternative investment fund industry
Investment Theme
As fund managers increasingly look to outsource their regulatory and back- and middle-office functions, there is a rising demand for tech-enabled solutions
- Investment Date: 2020
- Status: Private
- Headquarters: Walnut Creek, CA
- Website: derivativepath.com
- FTV Contacts: Robert Anderson, Brent Fierro, Max Weber
Derivative Path
Leading capital markets fintech providing technology-led solutions to assist financial institutions, buy-side and commercial end-users in executing and managing their over-the-counter interest rate derivative and foreign exchange transactions.
Investment Theme
Providing an end-to-end solution where users have front-, middle-, and back-office functionality in a single platform, eliminating the inefficiencies of working with disparate systems and service providers to manage various pre/post-trade workflows.
- Investment Date: 2020
- Status: Private
- Headquarters: Los Angeles, CA
- Website: docupace.com
- FTV Contacts: Robert Anderson, Brad Bernstein, Adam Hallquist
Docupace
Platform for automating operational and back-office workflows focused on the wealth management landscape
Investment Theme
There are tremendous growth opportunities in digitization and workflow automation for the wealth management industry, which currently relies heavily on manual, paper-heavy workflow.
- Investment Date: 2010
- Status: Private
- Headquarters: Shanghai, China
- Website: www.ebaotech.com
- FTV Contacts: Brad Bernstein, Abhay Puskoor
eBaoTech
Global insurance technology provider – offers end-to-end core system software and IT services to life, P&C, and reinsurance carriers.
Investment Theme
Outdated legacy technology in insurance industry creates huge opportunity for new platform, especially in emerging markets.
- Investment Date: 2016
- Status: Private
- Headquarters: New York, NY
- Website: www.edgewatermarkets.com/
- FTV Contacts: Brad Bernstein, Kyle Griswold, Brent Fierro
Edgewater Markets
Industry leader in electronic foreign exchange aggregation and distribution to global institutional clients.
Investment Theme
Need for efficient and low cost FX electronic execution on a customized, flexible technology platform that easily integrates with front and back-office systems.
- Investment Date: 2016
- Status: Private
- Headquarters: Chicago, IL
- Website: enfusionsystems.com
- FTV Contacts: Brad Bernstein, Robert Anderson, Brent Fierro, Daniel Kim
Enfusion
Provider of fully hosted front, middle and back office solutions for hedge funds and traditional asset managers, including execution, order management, portfolio management, risk, GL accounting, reconciliations, reporting and data warehouse.
Investment Theme
Alternative investment firms continue to shift away from legacy on-premises systems to cloud-based front-to-back office integrated portfolio systems.
- Investment Date: 2006
- Status: Private
- Headquarters: Jersey, Channel Islands
- Website: etfsecurities.com
- FTV Contacts: Richard Garman, Kyle Griswold
ETF Securities
Develops and distributes specialized exchange-traded commodities.
Investment Theme
The massive wave of retiring baby boomers is driving demand for consumer-friendly, low-cost asset management solutions and services.
- Investment Date: 2019
- Status: Private
- Headquarters: London, UK
- Website: liberis.co.uk
- FTV Contacts: Jerome Hershey, Brad Bernstein
Liberis
Tech-enabled provider of short-duration cash advances for SMBs to fund working capital
Investment Theme
The convergence of payment processing and SMB lending presents a large and growing investment opportunity
- Investment Date: 2016
- Status: Private
- Headquarters: Auburn, CA
- Website: riskalyze.com
- FTV Contacts: Brad Bernstein, Abhay Puskoor, Adam Hallquist
Riskalyze
Software platform for financial advisors that enables advisors to upload and build client portfolios and identify the portfolio’s Risk Number.
Investment Theme
Long‐term trend toward adoption of roboadvisors and automation tools.
- Investment Date: 2018
- Status: Private
- Headquarters: Salt Lake City, UT
- Website: stratafs.com
- FTV Contacts: Brad Bernstein, Kyle Griswold, Brent Fierro, Karen Derr Gilbert, Daniel Kim
Strata Fund Solutions
Leading fund service administrator for venture capital, private equity and other alternative asset managers and allocators offering includes traditional fund administration, shadow fund administration and data maintenance services.
Investment Theme
Demand for fund administration solutions has accelerated given the rapid growth in new funds and assets under management in alternative asset classes, as well as increased efforts by firms to improve their institutional processes and reporting.
- Investment Date: 2018
- Status: Private
- Headquarters: New York, NY
- Website: sunlightfinancial.com
- FTV Contacts: Brad Bernstein, Mike Vostrizansky, Adam Hallquist
Sunlight Financial
Leading technology-enabled finance company for residential solar and energy storage lending that partners with solar and battery installers, equipment distributors and sales organizations
Investment Theme
Growing solar and energy efficiency market with a need for efficient, fast and frictionless financing solutions for both homeowners and strategic partners
- Investment Date: 2014
- Status: Private
- Headquarters: Durango, CO
- Website: swanglobalinvestments.com
- FTV Contacts: Kyle Griswold, Richard Garman
Swan Global Investments
Asset manager providing hedged investment strategies to individuals, institutions and advisors.
Investment Theme
The massive wave of retiring baby boomers is driving demand for consumer-friendly, low-cost asset management solutions and services.
- Investment Date: 2016
- Status: Private
- Headquarters: Newcastle upon Tyne, UK
- Website: tpllp.com
- FTV Contacts: Brad Bernstein, Kyle Griswold, Adam Hallquist
True Potential
Integrated investor and wealth management technology platform for UK financial advisers and retail clients
Investment Theme
Leverage technology to streamline the entire wealth management investment process
- Investment Date: 2021
- Status: Private
- Headquarters: São Paulo, Brazil
- Website: vortx.com.br
- FTV Contacts: Kyle Griswold, Brent Fierro, Giovanni Bacarella
Vórtx
A tech-enabled provider of fund administration, corporate and trust services for fund managers and corporate issuers in Brazil
Investment Theme
The alternatives market in Brazil has grown and continues to expand. As a rapidly growing, tech-enabled, and independent service provider, Vórtx has emerged as an early leader in structured funds and corporate services.
- Investment Date: 2011
- Status: Acquired by Genstar in 2017
- Headquarters: Hamilton, Bermuda
- Website: apexfundservices.com
- FTV Contacts: Brad Bernstein, Kyle Griswold, Brent Fierro
Apex Fund Services
Provides fund administration, fund start-up and structuring, corporate secretarial, independent directorships, and investor communication services to asset managers in regulated, emerging and under-served markets.
Investment Theme
Growth of asset management (hedge funds) in emerging markets and lack of infrastructure.
- Investment Date: 2012
- Status: Acquired by PCS Retirement in 2019
- Headquarters: Tampa, FL
- Website: aspireonline.com
- FTV Contacts: Kyle Griswold
ASPire Financial Services
Turnkey provider of retirement plan solutions to small/micro businesses, organizations and government entities.
Investment Theme
Need for independent open architecture retirement plan platform targeting SMB market with flexibility to address fee transparency issues.
- Investment Date: 2009
- Status: Acquired by Wells Fargo in 2011
- Headquarters: Englewood, CO
- FTV Contacts: Brad Bernstein
Castle Pines Capital
Provides channel finance solutions- billing, payments, reconciliation and short term financing for technology vendors and their reseller customers.
Investment Theme
Lack of technology-enabled seamless end-to-end sector focused financing solutions.
- Investment Date: 2000
- Status: Sold public stock (PIPE)
- Headquarters: Dublin, CA
ELoan
Provides credit products and services such as mortgages, auto loans, credit cards and small business loans over the Internet.
Investment Theme
Digitization and consumerization of financial services.
- Investment Date: 1999
- Status: IPO in 2010 (NASDAQ: FNGN)
- Headquarters: Palo Alto, CA
- Website: corp.financialengines.com
Financial Engines
Offers online investment analysis and advice through financial institutions and company 401k plans based on models developed by Nobel prize-winning economist William Sharpe.
Investment Theme
The massive wave of retiring baby boomers is driving demand for consumer-friendly, low-cost asset management solutions and services.
- Investment Date: 2017
- Status: Acquired by Ally Financial in 2019
- Headquarters: Charlotte, NC
- Website: hcsloans.com
- FTV Contacts: Richard Garman, Abhay Puskoor, Brent Fierro
Health Credit Services
Provider of end‐to‐end, point‐of‐sale financing solutions for consumers’ elective medical care.
Investment Theme
Large and growing market for elective medical with increasing financing volume.
- Investment Date: 2008
- Status: Acquired by NYLife Investment Management in 2015
- Headquarters: Rye Brook, NY
- Website: indexiq.com
- FTV Contacts: Kyle Griswold
IndexIQ
Provides innovative index-based alternative investment products.
Investment Theme
The massive wave of retiring baby boomers is driving demand for consumer-friendly, low-cost asset management solutions and services.
- Investment Date: 2015
- Status: Acquired by Motive Partners in 2021
- Headquarters: Beverly Hills, CA
- Website: investcloud.com
- FTV Contacts: Richard Garman, Robert Anderson, Gary Weber
InvestCloud
Provider of cloud-based front and middle-office solutions focused on digitizing customer experiences and internal operations for global investment advisors.
Investment Theme
Need for flexible technology to digitize financial services industry burdened by legacy technology and disparate data systems.
- Investment Date: 2005
- Status: Acquired by Invesco in 2006
- Headquarters: Wheaton, IL
- Website: invescopowershares.com
- FTV Contacts: Brad Bernstein
PowerShares
Develops and manages specialized exchange traded funds (ETFS).
Investment Theme
The massive wave of retiring baby boomers is driving demand for consumer-friendly, low-cost asset management solutions and services.
- Investment Date: 2007
- Status: Acquired by PartnerRe in 2012
- Headquarters: San Francisco, CA
- FTV Contacts: Richard Garman
Presidio Reinsurance Group
Offers medical reinsurance products and services to insurance companies, HMOs, managed care organizations, healthcare systems, hospitals, medical groups and employers.
Investment Theme
Government efforts to continue to shift risk to private sector; Lack of pure play accident & health reinsurers.
- Investment Date: 2009
- Status: Acquired by Janus Capital in 2014
- Headquarters: New Canaan, CT
- Website: velocityshares.com
- FTV Contacts: Kyle Griswold
Velocity Shares
Provider of unique institutionally-focused exchange-traded products (ETPs), including exchange-traded funds (ETFs), for portfolio and trading risk management.
Investment Theme
The massive wave of retiring baby boomers is driving demand for consumer-friendly, low-cost asset management solutions and services.
- Investment Date: 2013
- Status: Acquired by Ant Financial in 2019
- Headquarters: London, UK
- Website: worldfirst.com
- FTV Contacts: Brad Bernstein, Kyle Griswold
WorldFirst
International payment platform offering FX and hedging solutions to SMBs, marketplaces, banks, asset/wealth managers and individuals globally.
Investment Theme
Rapid growth in cross border commerce.