Berlin-headquartered Elinvar, a Fintech firm that aims to assist wealth managers and private banks with digitizing their business processes, has secured €25 million in capital.
Elinvar’s platform outsources key processes such as client relationship management, digital onboarding, onsite advisory services, investment management, reporting, invoicing, online client access, and communication. The company also outsources third-party connections, like to custodian banks, market data, or Know-Your-Customer (KYC) service providers. This reportedly includes all applicable BaFin licenses to conduct operations in German markets.
Established in 2016 in Berlin, Elinvar serves as a platform-as-a-service (PaaS), and the company is now offering digital infrastructure to banking institutions, discretionary investment management firms and several other third-party services. Elinvar has recently increased its workforce to over 100 professionals and also launched a second business office in Magdeburg.
Several Germany-based private banks and discretionary asset managers such as Fondsdepot Bank and Donner & Reuschel are the firm’s clients. The lead investor for Elinvar’s round was Toscafund Asset Management, even though the transaction is currently subject to the customary approval of the German financial regulator BaFin.
Existing investors Ampega Asset Management, finleap and Goldman Sachs also took part in Elinvar’s round. The cash injection should help Elinvar with moving out of its product development stage to begin “heavily investing into its expansion.”
Chris Bartz, CEO and Co-Founder of Elinvar stated:
“Wealth management is going through a massive change. In order to offer the best solutions to their clients, wealth managers need to focus on their core competencies and collaborate with other partners, complementary to their expertise. Our goal is to connect the entire ecosystem and to enable our partners to execute their target operating model in the best way possible.”
George Koulouris, Partner at Toscafund, noted that the wealth management sector is “increasingly facing technological disruption.” Koulouris also mentioned that they’ve been closely watching these developments and are now “convinced that the right technological setup is decisive.”
As mentioned on Elinvar’s official website:
“Elinvar offers banks and asset managers the platform to digitize their business model. By combining leading technologies and the technical expertise of a licensed financial portfolio manager, we offer you a full range of services. The flexibility of our platform enables a completely individualized solution for you.”