Avaloq, a Swiss-based technology company for digital banking solutions founded in 1985, says the investment advisor of its fintech investment fund is being spun off from the group by means of a management buyout. This change of ownership will not impact the fund’s strategic focus, however, and Avaloq will maintain its long-term interests and involvement in Avaloq Ventures.
Following the spin-off from Avaloq Group, Avaloq Ventures is being renamed FiveT Fintech. The venture arm dates back to 2018, and is affiliated with a separate, independent Swiss asset manager, FiveT Capital Holding.
The Avaloq Ventures fund provides investors with early-stage access to next-generation players in the financial industry through Avaloq’s ecosystem, consisting of established banks and wealth managers as well as fintech companies.
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Following a launch with seven investments in fintech companies, Avaloq and Avaloq Ventures have agreed to spin off the fund’s investment advisor, Avaloq Ventures AG, as a separate entity, independent of Avaloq Group. This will give the management team more agility in advising the fund while Avaloq will focus on growing its ecosystem, also by increasing its commitment to the fund, the company says.
Alexander Christen, CEO of Avaloq Ventures, said the move will “further contribute to Avaloq’s ecosystem strategy.” He says the fund is better placed to navigate the soaring valuations and wall of private capital flooding the fintech industry, because of its corporate origins.
Martin Greweldinger, co-CEO of Avaloq Group, noted the venture group is instrumental in helping Avaloq keep abreast of cutting-edge developments in financial technology. Avaloq will “continue our collaboration with FiveT Fintech as our preferred financing partner for growth companies as we not only remain a major investor in the fund but are also increasing our commitment in the upcoming fourth closing”.
The management buyout is led by Francisco Fernandez (founder and board member of Avaloq Group and chairman of Avaloq Ventures), Christen, and FiveT Capital Holding, all of whom have already been a shareholder of the investment advisor.