Augmentum Fintech and Tikehau Capital strengthen partnership
Augmentum Fintech, the UK’s only publicly listed investment company focusing on the fintech sector, and Tikehau Capital, the global alternative asset manager, have announced an enhanced partnership to promote further growth in the expanding European fintech sector.
To cement this partnership, Tikehau Capital has raised its stake in Augmentum by becoming an investor in the company’s recent £55 million share issuance, which was completed on 13 July 2021.
The Covid-19 pandemic has increased demand from both consumers and businesses for enhanced digital capabilities. As the only publicly listed Fintech venture capital fund in the UK, Augmentum Fintech is playing a key role in supporting fintech companies to maximise their growth potential. By the end of June 2021, Augmentum has backed 22 companies across diversified fintech verticals, with a current NAV of £183m.
Tim Levene, CEO of Augmentum Fintech commented: “France, like the UK, has seen a step change in digital adoption because of Covid-19, and Paris, like London, is becoming a major focus for fintech investment. Tikehau Capital, headquartered in Paris, is one of Europe’s most entrepreneurial and innovative alternative asset managers, and we look forward to working more closely with them over the coming years”.
The focus for fintech investment
The enhanced relationship between the two companies also sees Augmentum declare its intention to establish a presence in mainland Europe. From Paris, Augmentum will leverage Tikehau Capital’s global footprint to support its significant pan-European investment pipeline. Recent investments by Augmentum include Epsor, an employee savings and retirement solution based in France; Tesseract, a digital asset innovator focusing on institutional brokerage and asset management based in Finland; and Grover, a start-up offering a rental service for consumer electronics in Germany.
Antoine Flamarion and Mathieu Chabran, co-founders of Tikehau Capital, added: “We have known Tim Levene and the Augmentum team for several years and are delighted to further strengthen our partnership, combining our unique investment expertise and deep European experience. Beyond our financial investment, this partnership will also see Augmentum benefit from Tikehau Capital’s pan-European network and footprint, as well as our expertise in the European fintech sector where we continue to see positive market dynamics.”
State Street launch crypto service for private funds clients
State Street Corporation is now expanding its push into the cryptocurrency industry by launching new digital asset services. It will provide digital and cryptocurrency asset fund administration capabilities for the firm’s private funds clients.
In partnership with Lukka, a leading enterprise crypto asset data, and software provider, State Street will support its private fund clients with collection, standardisation, enrichment, reconciliation, processing, and reporting related to crypto and other digital assets.
The partnership is State Street’s latest effort in the digital and crypto-asset space following the launch of State Street Digital, a division focused on addressing the industry’s evolving shift to digital finance, and comes after Lukka’s Series C funding round in December of 2020, which was led by State Street.
A rise in digital assets
“The growth in popularity of digital assets is showing no signs of a slowdown and State Street Digital is committed to continuing to build out the necessary infrastructure to further develop our digital assets servicing models to help meet our clients’ growing demands,” said Nadine Chakar, head of State Street Digital. “Our work with Lukka will leverage their software and data in order to help expand our digital and crypto asset fund administration capabilities to alternative managers is just another advancement in our digital solution set and marks a very exciting development.”
State Street will leverage Lukka’s product suite, which includes a proprietary middle and back-office data management solution, purpose-built for blockchain and crypto-asset data, as well as Lukka Reference Data, and Lukka Prime Pricing Data. This will enable State Street to consume crypto assets that are comingled within a private client’s traditional alternative investments portfolios.
“As our clients continue to adopt digital assets, such as crypto, we’ve seen increasing interest among investors for institutional quality middle and back-office offerings that support diversified portfolios,” said Jen Tribush, alternatives lead for State Street Digital.“ Lukka was the ideal partner to help provide these services given their leading position in crypto asset data as State Street continues to add to our growing offering in the digital asset space.”