Artivest, a digital platform that connects leading private equity and hedge funds with a wider audience of suitable investors, has completed a USD15 million round of funding led by KKR.
Existing investors RRE Ventures, Peter Thiel, Nyca Partners, Anthemis Group and FinTech Collective also participated. Artivest will use the funding to accelerate the growth of its technology, infrastructure and sales teams and the execution of its product roadmap.
“Artivest combines leading technology with operational tools for feeder funds that will further open the door for financial advisors and high net worth investors looking to commit capital to a wide variety of top private equity funds. Most private equity firms are very interested in accessing this capital but do not have the technical or operational capability to do so today. We look forward to partnering with Artivest as they expand their business,” says Ed Brandman, KKR's Chief Information Officer, who will join Artivest's Board of Directors.
Founded in 2012 and headquartered in New York City, Artivest provides access at lower investment minimums to a select assortment of privately offered alternative investment funds. To date, Artivest has offered premier private equity and venture capital funds and will soon be offering hedge funds.
“The process of investing in private placements – previously inefficient for all involved–has not changed in any meaningful way for decades. A number of trends have come together, including alternative funds’ increasing focus on individual investors and investors’ growing appetite for all types of alternatives. At this crucial moment, we are bringing private investing a much-needed digital upgrade,” says Artivest CEO and Founder, James Waldinger. “It's a great honour and a meaningful endorsement to be backed by KKR, one of our first partners.”
Qualified investors, including those served by the rapidly growing independent advisor community, are fuelling a new wave of demand for alternative strategies and are, in fact, the fastest growing segment of assets allocated to alternative funds. With equity markets periodically testing new highs and publicly available fixed income investments providing unsatisfactory yields, clients and their advisors are actively seeking alternative solutions for compounding wealth over long time periods. Top private equity and hedge funds, which have historically raised capital exclusively from institutions and those capable of writing institutional-sized checks, are compelled by this investor base but challenged by the implications of sourcing, onboarding and serving a much more fragmented clientele.
Artivest provides a multi-pronged solution to connect these two constituencies at scale. Key Artivest features for qualified investors include more accessible investment minimums, online access to intuitive displays of fund metrics and electronic completion of all legal documentation. Funds utilise Artivest technology to manage investor relations and client operations at scale. Both user types benefit from best-in-class-security and encryption protection.