Paris-based BlackFin Capital Partners, a private equity and venture capital firm focusing on financial services, announced on Monday the second closing of its Tech 2 fund at €350M.
With the new fund, the firm doubles down on its strategy to back and develop promising B2B fintechs and insurtechs across Europe. BlackFin grew its investor base farther into Europe and North America with the help of previous investors and a re-up rate well above 100 per cent.
The Tech 2 fund is already double the size of its predecessor, Tech 1. BlackFin’s first fund raised €178M in 2018.
Investors in financial services and fintech, across Europe
BlackFin Capital Partners was established in 2009 and is an independent private equity firm led by nine partners who have worked together as managers and entrepreneurs in the financial industry for decades. Its team comprises a total of 45 professionals across offices in Paris, London, Brussels, and Frankfurt.
The firm’s strategy is to focus on asset-light companies in the financial services industry throughout continental Europe. The BlackFin team claims to have aided in the transformation of its portfolio firms through organic growth, increased operational margins, and a proactive purchase and build approach.
BlackFin Capital takes either a majority or an influential minority shareholder position in its portfolio companies. It has €2.4B in assets under management.
Currently, the VC is investing from its €1B Buyout III and €350M Tech 2 funds, targeting established financial services companies and high-growth B2B fintechs & insurtechs.
What to expect from Tech 2 Fund?
Although the current market conditions are emphasising the need for disciplined investment strategies, BlackFin will continue to concentrate on high-growth B2B businesses operating with strong unit economics in Tech 2. Its predecessor, Tech 1, invested in 17 European companies, boasting industry-leading performance, growth trajectories and strong resiliency.
According to BlackFin, its Tech 2 Fund is well-positioned to participate in the continuing financial industry revolution. For B2B fintechs and insurtechs, technological advances, regulatory challenges, and changing consumer expectations are producing significant tailwinds. The BlackFin tech team is supporting the commercial development, growth strategy, global expansion, and equity narrative creation of its portfolio companies.
Founding Partner of BlackFin, Laurent Bouyoux, says, “Our ambition remains to be the leading partner of financial services entrepreneurs in Europe. With the continued trust and support of our investors as well as the size of our teams, the successful fundraising of BlackFin Tech 2 demonstrates our position as the undisputed leader in the European Financial sector. Our Tech strategy has continued to add immense value to our investment platform and is a critical component of our irreplicable investment strategy.”
Tech 2 has already made its first investment
BlackFin Tech 2 Fund has already backed Paris-based Descartes Underwriting, an insurtech company specialising in next-generation parametric insurance.
Founded in 2018 by Sebastien Piguet and Tanguy Touffut, the French company provides products that cover the full spectrum of natural catastrophes and emerging risk exposures. The company claims to be making a major impact on commercial insurance worldwide, with 50+ per cent of its revenues generated outside of Europe from offices on all continents. Its revenue growth remains above 100 per cent Y-o-Y with outstanding unit economics.
