Visible Alpha, a US technology firm backed by some of the world’s largest banks, has secured $38m in a funding round led by Goldman Sachs as it looks to expand on the back of new European trading rules.
The fintech firm is one of a number that has sprung up to help institutions with research valuation and budgeting requirements under the European Union’s updated Markets in Financial Instruments Directive.
Under Mifid II, which came into force on January 3, asset managers must split out the fees they pay for external research from trading costs and either bear the burden themselves or charge investors through separate accounts.
In November last year, Visible Alpha acquired London-based Alpha Exchange, which runs a cloud-based system that enables banks and other research providers to sell their reports to asset managers, who can then track what research they use.
Alongside Goldman Sachs, other new investors in the funding round were Santander InnoVentures — the venture capital arm of Santander — Exane BNP Paribas, Macquarie Group, Royal Bank of Canada and Wells Fargo. Existing investors Bank of America Merrill Lynch, Citigroup, Jefferies, Morgan Stanley and UBS also took part.
Visible Alpha was set up February 2017. It has more than 100 asset management customers with combined assets of $16tn, according to today’s statement. In a statement this morning, it said that it would use the capital to support its global expansion
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