Scalable Capital closes €30m funding round from BlackRock
London and Munich-based digital investment manager will use funding to fuel expansion across Europe
Scalable Capital, a London and Munich-based digital investment manager, has landed €30m in funding from BlackRock, alongside HV Holtzbrinck Ventures and Tengelmann Ventures.
Founded in 2014, Scaleable Capital creates and manages globally diversified exchange-traded fund portfolios for its clients to help them achieve their financial goals. Using risk management technology, it is aiming to make investment management “cheaper, more accessible and more convenient”.
Able to operate across multiple international tax and regulatory regimes and in multiple languages, the 50-strong company claims to have already gathered more than €250m (£217m) of assets from over 6,000 retail clients.
The investment – which takes the company’s total funding to €41m – will enable Scaleable Capital to expand further across Europe, helping financial institutions cope with the need to increase investor protection, value for money and transparency in light of a “changing regulatory landscape”.
Scaleable Capital will remain independent in its product selection and asset allocation decisions, with the investment expected to close in the third quarter of this year.
Adam French, co-founder and co-CEO at Scalable Capital, said: “BlackRock shares our vision that technology is not just a competitive advantage but a requirement for wealth management businesses to be successful in the future.
“Its investment in our firm is a fantastic validation of our work so far, opens up new growth avenues for our business and firmly establishes us on the digital wealth management map in Europe. BlackRock’s backing provides a huge opportunity for us to partner with their clients to help accelerate our business with financial institutions and corporates.”
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Patrick Olson, chief operating officer of Europe, the Middle East and Africa at BlackRock, commented: “The retail distribution landscape is evolving at a rapid pace, as consumers increasingly engage with their financial investments through technology.
“This trend is prompting strong demand from European financial institutions – including banks, insurers, wealth managers and advisory firms – for high-quality technology-enabled investment solutions. Our investment in Scalable Capital allows us to meet these evolving needs of our clients and their customers and to help shape their business models for the future.”