The venture capital specialist remains a key part of Avaloq’s ecosystem strategy — Avaloq today announced that the investment advisor of its fintech investment fund is being spun off from the group by means of a management buyout. This change of ownership will not impact the fund’s strategic focus and Avaloq will maintain its long-term interests and involvement in Avaloq Ventures.
Launched in 2020, the Avaloq Ventures fund provides investors with early-stage access to next-generation players in the financial industry through Avaloq’s unique ecosystem, consisting of established banks and wealth managers as well as up-and-coming fintech companies.
Following a successful go-live with seven promising investments in fast growing fintech companies, Avaloq and Avaloq Ventures have agreed to spin off the fund’s investment advisor, Avaloq Ventures AG, as a separate entity, independent of Avaloq Group. This will give the management team more agility in advising the fund while Avaloq will focus on growing its ecosystem, also by increasing its commitment to the fund.
The management buyout is led by Francisco Fernandez (founder/board member of Avaloq Group and Chairman of Avaloq Ventures), Alexander Christen (CEO of Avaloq Ventures) and FiveT Capital Holding AG, all of whom have already been a shareholder of the investment advisor. Following the spin-off from Avaloq Group, Avaloq Ventures is being renamed FiveT Fintech.
Francisco Fernandez said: “As FiveT Fintech enters the next stage of its growth story, we firmly believe that the fund will benefit from this new structure, allowing the management team more freedom to implement its innovative strategy. I’m personally very excited about the investment opportunities in the extremely dynamic fintech space and look forward to supporting start-ups to reach their full potential and giving investors the opportunity to participate in their success.”
Alexander Christen said: “Going independent is a major step for FiveT Fintech and we are very happy to further contribute to Avaloq’s ecosystem strategy. As the capital flows into the global fintech sector are reaching new highs, our fund is uniquely positioned to identify the most promising start-ups and accelerate the digitalization of the financial industry.”
Martin Greweldinger, co-CEO of Avaloq Group, said: “Constant innovation is part of Avaloq’s long-standing software DNA and being an active player in the start-up scene is key to keeping abreast of the latest technology trends in the financial industry. We are therefore delighted to continue our collaboration with FiveT Fintech as our preferred financing partner for growth companies as we not only remain a major investor in the fund but are also increasing our commitment in the upcoming fourth closing. At Avaloq, we firmly believe in focusing on core strengths, hence we are confident that the fund and its investors will benefit from this new setup.”