Next-gen fund administration platform ScalingFunds receives new investment to expedite growth plans

4 minutes
September 13, 2021

The financing round, led by Finch Capital, comes on the back of strong traction generated by ScalingFunds over the last 12 months. Despite COVID19, ScalingFunds signed more than €1bn of fund volume to transact on its alternative investment platform.

BERLIN, [December 1, 2020] – As a spin-off from real estate tokenisation pioneer Brickblock, the former German subsidiary has completed its rebrand into ScalingFunds GmbH and continues building out its alternative investment platform, which launched in late 2019. Its primary focus is providing fund managers with the right digital tools and legal setup for administering, distributing, and managing alternative investment funds, including asset classes such as real estate, private equity, debt, and infrastructure.

“We are very proud fund managers and investors trust ScalingFunds to provide an easier way to the rather complicated world of alternative investment funds. AIFs have seen a steep growth rate in the last decade growing from a €2tn to a €6tn market in Europe alone, making it necessary to upgrade the paper-based administration to keep up with the growing transaction volume”, says Jakob Drzazga, CEO of ScalingFunds.

ScalingFunds’ comprehensive turnkey solution leverages Brickblock’s blockchain technology to enable a fully digital shareholder registry. Traditionally, shareholder registries are calculated manually and stored on paper or local computers at a transfer agent’s office or logged on an expensive central securities depository. It also provides asset managers with integrated legal structures in Luxembourg, Ireland, and multiple other jurisdictions throughout the European Union.

“We see growing interest in our software from fund managers and transfer agents who are looking to benefit from direct-to-customer distributions, real-time secondary market transactions, and streamlined fund administration capabilities,” says Jakob Drzazga. “With the new investment, we will be able to further build out our platform catering to the growing needs of transfer agents, private banks, and fund managers.”

“We are happy to see that Jakob and his team are experiencing this amount of traction from institutional clients. The most recent hires from big international asset managers, such as Peter Wilson from NN Investment Partners, are strengthening ScalingFunds’ role in the fund industry,” said Radboud Vlaar, founding partner at Finch Capital.

The ScalingFunds financing round is the latest in a growing number of investments in the asset servicing industry. The latest investments include Natixis and Clearstream into UCITS-focused FundsDLT, and Goldman Sachs into US-based AIF-focused iCapital.

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