German fintech Solactive, a technology-enabled provider of indices and index solutions to the global financial services industry, has taken a $60.4 million / €50 million minority investment from growth investor Summit Partners.
Widely regarded as something of a disruptor in the global indexing industry, Solactive is benefitting from the ongoing and significant shift of active to passive investment strategies. Although Europe-based, it has more than 400 clients worldwide, including major investment banks, ETF providers and hedge funds, with more than $200 billion of global assets linked to more than 17,000 Solactive indices.
The idea behind Solactive is to take a customer-centric and technology-first approach to the creation, development, calculation and distribution of indices and related services. Because it is technology-first, it can offer tailor-made index solutions for ETFs and other index-linked investments across equity, fixed income and multi-asset class strategies.
Steffen Scheuble, the CEO of Solactive who founded Solactive in 2007, said: “We are proud to be one of the fastest-growing index providers in the world and widely regarded as a disruptor in the global index market. We are excited to join forces with Summit Partners and work together to further accelerate our journey. Summit brings significant experience in the technology and financial services sectors, as well as deep resources in supporting the expansion of our businesses across products, regions and client segments.”
Johannes Grefe, a principal with Summit Partners who will be joining the Solactive board of directors, commented: “Steffen and the Solactive team have recognized and responded to this trend with a highly automated and customer-centric approach based on a robust technology platform. With a strong combination of vision, product and client reach, we believe Solactive is well-positioned to continue its innovative disruption of the indexing market.”
Solactive serves its global customer base from its headquarters in Frankfurt am Main, Germany, and offices in Toronto, Hong Kong, Berlin and Dresden.