Apollo Global Management Inc. (NYSE: APO) is reportedly investing in startup Vega as well as adopting its tech that aims to enhance service for customers aiming to boost investments in private markets.
The asset management firm and fintech industry focused investment provider Motive Partners are reportedly leading a $20 million Series A investment round in order to support Vega AltOS, a tech platform that intends to assist alternative asset managers further their distributions.
AltOS’ software enables a link between the asset manager and investors via the client’s preferred platform.
Vega, an alternative investment tech firm, founded by a team of former executives from hedge funds, private equity firms, and fintech scale-ups, confirmed the closing of a $20 million Series A led by Apollo and Motive.
Vega has also formed an enterprise-scale partnership with Apollo.
These developments mark a milestone in Vega’s growth journey, as the company aims to become the industry’s “operating system for alternative asset managers.”
Growing investor demand for private markets exposure is pushing alternative asset managers to transform how they service current clients and “expand their service to new segments.”
Outdated client service tech and fragmented point solutions have “hindered asset managers’ ability to scale.”
In response, Vega’s mission has been to focus exclusively on the technology needs of alternative asset managers – building “unifying solutions that enable scalable growth through Vega’s alternatives core system (AltOS), a comprehensive platform powering digitally-enabled client service across pre-trade, execution, and post-trade operations.”
Vega AltOS will enable alternative asset managers to distribute products and serve clients through an “Alternatives-as-a-Service” framework, allowing any platform or client to connect to an alternative asset manager via API.
This tech facilitates direct connection between an asset manager and clients via the client’s service or platform of choice – whether “intermediary advisor platforms, technology partners, or direct-to-institutional – enhancing the integration of alternatives in client portfolios.”
Vega believes the transformation of alternative asset management client service and operations infrastructure – through “a modern AltOS client core – is the missing foundational layer for the industry to transition from its current distribution framework to a more scalable flow operating model, driving down cost for alternatives distribution, client service, and private markets transaction processing.”
Vega intends to partner with other asset managers and platform providers to build standardized private markets client service infrastructure.
Vega is building the distribution operating system (AltOS) for the alternatives industry, empowering asset managers to scale their client base.
Via a unified Core engine, Vega orchestrates siloed offline processes across “pre-trade, execution and post-trade client operations, while enabling asset managers to distribute their products through a scalable ‘Alternatives-as-a-Service’ framework.”
Vega’s modular, API-driven architecture ensures compatibility with a broad range of existing point solutions and third-party stakeholders, setting the foundations for the “purpose-built infrastructure layer for the alternatives industry.”
Vega’s founding team consists of alternatives specialists from investment firms such “as KKR, Blackstone, Elliott and Goldman Sachs, along with top product and engineering talent from successful fintech scale-ups like Revolut and Trade Republic.”
Vega has raised over “$28m in funding from Apollo, Motive, Picus Capital, Citi Ventures, and 60 senior executives from the alternative investment industry.”
Motive Partners is a specialist private equity firm with offices in New York City, London and Berlin, focusing on “growth equity and buyout investments in software and information services companies based in North America and Europe and serving five primary subsectors: Banking & Payments, Capital Markets, Data & Analytics, Investment Management and Insurance.”
Motive Partners brings expertise, connectivity and capabilities to “create long-term value in financial technology companies.”
Motive Ventures is the early-stage investment arm of Motive Partners, focused on “pre-seed through to Series A financial technology investments in North America and Europe.”
