BlackRock buys minority stake in Scalable Capital

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One of the largest investment management company, BlackRock said it has acquired a minority stake in Scalable Capital.

Scalable Capital is a digital investment manager. Which seeks to use the €30m funding to push its growth ambitions with financial institutions and corporates

The funding round was led by BlackRock alongside existing investors HV Holtzbrinck Ventures and Tengelmann Ventures. This funding round is one of Europe’s largest for a digital investment manager to date, bringing Scalable Capital’s total funding to €41m. BlackRock has taken a significant minority equity stake in Scalable Capital to help them grow their business with financial institutions and corporates.

Patrick Olson, BlackRock’s Chief Operating Officer of EMEA, will join Scalable Capital’s Supervisor Board. Scalable Capital, based in Munich and London, is one of Europe’s fastest growing digital investment managers. Since its launch just 16 months ago, Scalable Capital has already gathered over €250m of assets from over 6,000 retail clients and has established a leading proposition with strong demand from financial institutions and corporates. The firm has seen strong growth in Germany and the UK, two of the most attractive and competitive markets for digital investment managers in Europe, and has the ability to expand its offering even further across the Continent. The offering provides a flexible multi-language and currency platform that can operate across multiple international tax and regulatory regimes.

Erik Podzuweit, 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.”

BBlackRock said Scalable Capital will remain an independent company. Its product selection and asset allocation decisions will continue to be independent.

However, the investment is subject to regulatory approval and expected to close in the third quarter of 2017.

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