Augmentum Fintech, the UK’s only publicly listed investment company focusing on the fintech sector, and Tikehau Capital, the global alternative asset manager, have announced an enhanced partnership to promote further growth in the burgeoning European fintech sector.
Covid-19 has been a catalyst for many fintech companies with an increasing demand from both consumers and businesses for enhanced digital capabilities. As the only publicly listed Fintech venture capital fund in the UK, Augmentum Fintech is playing a key role in supporting fintech companies to maximise their growth potential. As at end June 2021, Augmentum has backed 22 companies across diversified fintech verticals, with a current NAV of GBP183 million.
Tikehau Capital and Augmentum Fintech are strengthening their links through the establishment of a close partnership. To cement this partnership, Tikehau Capital has raised its stake in Augmentum by becoming an investor in the company’s recent GBP55 million share issuance, which was completed on 13 July 2021.
As a firm driven by a strong entrepreneurial culture, Tikehau Capital wants to seize compelling investment opportunities and support industries that are undergoing major transformation, benefitting from strong growth potential. By partnering with Augmentum, Tikehau Capital increases its exposure to venture capital, on top of its investment in Ring Capital, a leading private equity firm specialising in the financing of technology and digital companies. In addition, Tikehau Capital is already a majority shareholder in two French fintechs, Crédit.fr and Homunity, and a significant shareholder in the Australian neo-bank Judo Bank. The Group continues to see ample value-creating opportunity in the innovative fintech sector.
The enhanced relationship between the two companies also sees Augmentum declare its intention to establish a presence in mainland Europe. From Paris, Augmentum will leverage Tikehau Capital’s global footprint to support its significant pan-European investment pipeline. Recent investments by Augmentum include Epsor, an employee savings and retirement solution based in France; Tesseract, a digital asset innovator focusing on institutional brokerage and asset management based in Finland; and Grover, a start-up offering a rental service for consumer electronics in Germany.
Tim Levene, CEO of Augmentum Fintech, says: “France, like the UK, has seen a step change in digital adoption because of Covid-19, and Paris, like London, is becoming a major focus for fintech investment. Tikehau Capital, headquartered in Paris, is one of Europe’s most entrepreneurial and innovative alternative asset managers, and we look forward to working more closely with them over the coming years”.
Antoine Flamarion and Mathieu Chabran, co-founders of Tikehau Capital, adds: “We have known Tim Levene and the Augmentum team for several years and are delighted to further strengthen our partnership, combining our unique investment expertise and deep European experience. Beyond our financial investment, this partnership will also see Augmentum benefit from Tikehau Capital’s pan-European network and footprint, as well as our expertise in the European fintech sector where we continue to see positive market dynamics.”