In the current digital era, wealth management is witnessing a massive change as it undergoes a technology-led disruption. One company that is working towards enabling asset and wealth managers to digitalise their business models is Elinvar. The Berlin-based PaaS (Platform-as-a-Service) company has bagged fresh funding to scale its business.
€25M funding from Toscafund Asset Management
Elinvar has hit the headlines as it bagged €25M funding led by Toscafund Asset Management, which is subject to the approval of the BaFin, the federal office for financial supervision. Others that participated in the funding round are existing shareholders Ampega Asset Management, Goldman Sachs and finleap. The company will use the investment to scale its multi-tenant platform and connect the wealth management ecosystem.
Chris Bartz, CEO & Co-Founder of Elinvar says, “Our goal is to connect the entire ecosystem and to enable our partners to execute their target operating model in the best way possible. We are proud that Toscafund and our existing shareholders share our vision and support us in delivering on it.”
George Koulouris, Partner at Toscafund says, “The wealth management industry is increasingly facing technological disruption. We have closely monitored these developments and are convinced that the right technological setup is decisive. Elinvar is ideally positioned to execute on this front while allowing partners to digitise in a cost-effective manner, and its PaaS is perfectly designed to become the dominant technological infrastructure for wealth management.”
Gears up to invest in expansion
Founded by Chris Bartz, Dr Marco Neuhaus and Sebastian Böttner in 2016 in Berlin, Elinvar focuses on B2B2C, which lets its partners digitalise their business models. The company provides a multi-tenant solution with the intention to connect the entire wealth management ecosystem.
Elinvar delivers the technological infrastructure and lets banks, discretionary portfolio managers, third party providers and all other users of the platform to efficiently execute new business models, access new value chains, optimise their costs and utilise their core competencies.
Successful partnerships
The Elinvar platform is used by several major German private banks, discretionary portfolio managers and Germany’s largest liability umbrella, Fondsdepot Bank in partnership with multiple players, claims the company.
“For instance, the private bank Donner & Reuschel shares Elinvar’s vision. After migrating its own book of business to the platform, Donner & Reuschel also makes use of the company’s multi-tenant capabilities in the context of its strongly growing business with independent discretionary portfolio managers. This lets it serve one in six portfolio managers across Germany and constantly optimise the best end-to-end solution,” says Elinvar in a press release.
About Elinvar
According to the company, its multi-tenant platform offers service packages for core processes like client relationship management, online onboarding, onsite advisory support, portfolio management, reporting, invoicing, online client access and communication as well as third party connections, e.g. to custodian banks, market data or KYC providers.
The fact that Elinvar holds all the necessary BaFin licenses definitely proves beneficial for its partners. “With this comprehensive approach, Elinvar creates the unique opportunity for its partners to execute new business models, to access new value chains, to optimise their costs and to utilise their core competencies in an optimal way,” says the company. In less than five years, Elinvar has grown to more than 100 employees and opened a second office in Magdeburg.
