Validus Risk Management, a software and tech-enabled services platform for financial risk management, announced that it has secured a $45 million growth equity investment from FTV Capital, a sector-focused growth equity firm.
The minority investment will enable Validus to accelerate its go-to-market efforts, expand into the United States and APAC, and continue to penetrate the European market.
Additionally, the investment will be used to invest in technology and product innovation.
The global market for alternative assets has grown significantly over the past decade, reaching over $13 trillion of assets under management in 2024.
As private markets evolve and become more complex, investment firms are increasingly demanding specialized technology and services to manage market risks, optimize internal processes, and seek operational efficiencies.
Validus delivers software and tech-enabled solutions to fund managers across private debt, private equity, secondaries, infrastructure, and real estate.
The company reportedly serves over 750 funds globally, whose managers have $3.2 trillion in combined assets under management.
Validus claims that it has consistently demonstrated profitability, with significant year-on-year recurring revenue growth.
Kevin Lester, co-founder and chief executive officer at Validus, stated that the company’s commitment to excellence has been the foundation of its success.
Lester emphasized that innovation drives the company, whether through designing customized hedging strategies or developing technology that streamlines operations, mitigates risk, and enhances efficiency for clients.
Lester added that with the backing of FTV Capital, Validus is poised to scale faster and deliver even greater value to its growing client base.
Mike Cichowski, partner at FTV Capital, noted that the global alternative asset industry is massive and growing, yet risk management has been largely overlooked.
Cichowski stated that Validus fills this gap in the market, delivering a comprehensive platform and technology solutions that aim to address risk management and drive operational efficiencies.
Cichowski emphasized that Validus has demonstrated its success and potential, consistently growing market share profitably and proving itself as the solution of choice for many of the world’s leading private capital firms.
Haakon Blakstad, chief commercial officer at Validus, added that the company was impressed with FTV Capital’s understanding of the sector and enthusiasm for the opportunities that lie ahead.
Blakstad stated that the partnership is about far more than capital, and that the strategic support, operating resources, and network that FTV will provide are worth many times more than the investment itself.
As part of this investment, Cichowski will join the Validus board of directors. Walter Global Asset Management will remain on the board as a minority shareholder.
The transaction is subject to regulatory approvals and customary closing conditions.
