BlackRock takes €30m minority stake in Scalable Capital

By Daniel Lanyon on Tuesday 20 June 2017

Savings and Investment

The investment will fund the firm’s growth ambitions, particularly towards corporates and institutions.

The investment will fund the firm’s growth ambitions, particularly towards corporates and institutions. 

Scalable Capital has completed a €30m funding round, led by asset management giant 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 Supervisory Board.

Scalable Capital, based in Munich and London, is one of Europe’s fastest growing digital investment managers. Since launch 16 months ago, Scalable Capital now has €250m (£217m) of assets under management from over 6,000 retail clients, and is seeing increasing demand from institutional investors.

Patrick Olson, Chief Operating Officer of EMEA at BlackRock, says retail distribution in asset management 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.”

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.”

The firms said in a joint release that Scalable Capital will remain an independent company including product selection – BlackRock has its own ETF business called iShares – as well in asset allocation decisions.

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

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