Venture capital invests in investment management software: Efront, MRI Software, Betterment and Indexa Capital
11/05/2016
Diego Gutiérrez
Venture capital invests in investment management software: Efront, MRI Software, Betterment and Indexa Capital
The risk capital is investing in companies that provide software solutions for portfolio management. Efront has been bought by Brige point and Gi Partners bought MRI Software, both purchases coming after the technology companies had made acquisitions in the sector.

Brige Point buys Efront software for €330M

In January 2015 Bridge Point bought the French leader in software solutions for private equity institutions Efront for €330M.

The operation involves the departure of Francisco Partnerswhich acquired efront in September 2011, when it was worth $ 89M. 

eFront is a specialist software provider of financial solutions for alternative investment management. Founded in 1999, it serves more than 700 clients and 100,000 users in 48 countries.

The eFront suite of solutions covers both back office (fund administration and fund accounting), front office (portfolio tracking and investor portal), and front office (CRM, fundraising and deal monitoring).  Founded in 1999 Efrond has grown through acquisitionsIn 2012, it acquired DMLT, the market-leading provider of investor information portal and presentation services for the alternative asset community. This purchase helped to strengthen its position in North America and gave it the opportunity to provide more advanced investor communication services. In 2013 Efront acquired AnalytX, which provides technology solutions for back-office and front-office areas of small and medium-sized companies in the alternative investment industry.

 GI Partners buys MRI Software

 Last year, venture capital GI Partners, bought MRI SoftwareThe real estate investment software, financial modelling software for real estate investors, allows you to accurately forecast performance and create model scenarios in order to build your strategic plan, make decisions and efficiently conduct your transactions within the real estate ecosystem. This capital injection will help it pursue its growth strategy by innovating in the sector and entering new markets. In February 2015 MRI had purchased Cougar, which allows it to predict the profitability of a real estate portfolio, putting the focus on fund management, debt, asset valuation and budgeting.  

 Betterment, an example of a business model that attracts investors

 Betterment the financial robot that provides you with information and statistics related to capital investment, received a $100M round in March 2016, after having closed a $60M round in 2015.Investors include. Anthemis Group, Bessemer Venture Partners and Menlo Ventures. Betterment now manages 150,000 clients and $3.9 billion in assets, up from $1.1 billion just 15 months ago. Betterment has added two new elements to its business model, initially focused on individuals, by creating an institutional platform "Betterment Institutional" - which it launched in October 2015 - and another for businesses "Betterment for Business" which was announced in September and will be operational later this year. 

Indexa Capitalthe first automated investment manager in Spain.

 The operation of Indexa Capital is based on passive investment management: the company invests in index funds - which track both fixed income and equity indices - and charges fees 80% lower than those required by the financial industry, replacing the intervention of a personal advisor with an algorithm. It is the machine that allocates the portfolios.automatically, based on users' performance objectives, age, income and risk aversion. By reducing costs, the promised return is 3.1% higher than the average for banks and funds. "The portfolios are distributed on a scale of one to 10, where one corresponds to less risk, and 10 to more risk; the ideal is to invest over a period of at least five years," explains François Derbaix, co-founder and CEO of the company, which began to work at full speed last December, when the National Securities Market Commission (CNMV) granted it authorisation to operate in Spain. Depending on the model portfolios, the percentage of equities can vary from 10% to 90%. "We offer what we believe is best for the client," he says.

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