Estancia Capital Partners LP is reportedly acquiring a minority stake in cash deposit platform Flagstone, so that it can provide more firepower to the UK startup’s line of savings products.
Flagstone reportedly stated that the £108 million (appr. $139 million) investment from the private equity firm is to be channeled towards strengthening and further expanding operations across Britain and globally, as well to reward current investors.
The company has not shared publicly the actual size of Arizona-headquartered Estancia’s stake following the transaction.
Simon Merchant, co-founder and CEO of Flagstone, said:
“At a time when funding capacity is down on a global scale, Estancia’s investment and market expertise provides us with the firepower necessary to really capitalise on the opportunities ahead of us.”
Flagstone’s platform enables clients to split their funds across different providers while benefitting from interest rate adjustments and various offers. It offers similar types of services to UK financial companies such as St. James’s Place and Revolut.
The company claims that it has over 600,000 customers and assets under administration of over £11 billion.
Flagstone stated that it increased assets by over £1 billion per quarter last year, with steady growth in both business and retail clients, and also added that it’s been profitable for the last five quarters.
Flagstone has reportedly raised £149 million to date from key investors such as Estancia Capital Partners, OMERS Ventures, Kindred Capital, Volution and Moneysupermarket Group.
The most recent investment is primary and secondary funding, allowing Flagstone’s early backers to realize a susbtantial return on their investments, according to an official note from the firm.
As covered early last year, SmartSave Bank, the savings brand of UK digital bank Chetwood Financial, announced a new partnership with Flagstone, the UK’s cash deposit platform.
Flagstone claims it is “the UK’s largest smart cash platform for corporate, charitable and individual clients.” It offers “a choice of banks and accounts, allowing customers to compare, manage and move deposits with ease to maximize returns and minimize risks.”
Under the new partnership, SmartSave will make its fixed-rate accounts available to Flagstone clients “while scaling up its deposit-raising activities via Flagstone’s broad distribution channels.”
