Goldman Sachs, through its Principal Strategic Investments group, has made an investment in German fintech Elinvar, which provides a digital platform for asset and wealth managers.
The investment in Elinvar was made through a funding round, which also saw participation from the German fintech’s existing shareholders – Ampega Asset Management (Talanx Group) and finleap.
The fintech’s total funding has grown to more than €20m following the completion of the latest round, which will be subject to approval of Germany’s Federal Financial Supervisory Authority (BaFin).
The fintech company was founded by Talanx and FinLeap in October 2016. With an exclusive focus on B2B2C, Elinvar helps its partners to digitalize their business models.
The fintech’s partners are said to be benefited from the combination of its technological expertise and the optimal regulatory setup it provides owing to all the required BaFin licenses it holds.
Various German private banks and discretionary portfolio managers such as Privatbank Donner & Reuschel, M.M.Warburg & CO and Fürstlich Castell‘sche Privatbank, are said to be using the digital platform already.
Goldman Sachs principal strategic investments group executive director James Hayward said: “Elinvar has developed innovative technology that can help accelerate the digitisation of the asset management industry. We are impressed with the vision and determination of the management team and look forward to supporting them as they execute an ambitious growth plan.”
Elinvar plans to use the new capital to expand its team further in a lean and sustainable manner. At the same time, the company will remain to be focused on its key competency of offering the digital platform for asset and wealth managers.
It believes that the new shareholder structure following the entry of Goldman Sachs to help its global expansion by launching its offer across more countries in Europe.
Elinvar CEO & co-founder Chris Bartz said: “The Goldman Sachs Principal Strategic Investments group is a leading venture investor and proven expert when it comes to the future of fintech. We’re excited to welcome them as our shareholder.
“Together with the ongoing support of our existing shareholders, we have the perfect setup to make use of the possibilities ahead of us.”