Solactive, a technology-enabled provider of indices and index solutions to the global financial services industry, has secured a EUR50 million minority investment from global growth equity firm Summit Partners. The investment will help support Solactive’s continued global growth, as the company expands its product offering and presence worldwide and further builds upon its proprietary technology platform, infrastructure and global team.
Solactive is challenging the status quo in the indexing industry by taking a customer-centric and technology-first, flexible approach to the creation, development, calculation and distribution of indices and related services. The company provides tailor-made index solutions for ETFs and other index-linked investments across equity, fixed income and multi-asset class strategies. Offering a high level of flexibility, speed and value, Solactive’s award-winning solutions are used by more than 400 international clients, including leading investment banks, ETF providers, hedge funds, asset owners and asset managers, with more than USD200 billion of global assets linked to more than 17,000 Solactive indices.
“We are proud to be one of the fastest growing index providers in the world and widely regarded as a disruptor in the global index market,” says Steffen Scheuble, Founder and CEO of Solactive. “We are excited to join forces with Summit Partners and work together to further accelerate our journey. Summit brings significant experience in the technology and financial services sectors, as well as deep resources in supporting the expansion of our businesses across products, regions and client segments.”
Scheuble founded Solactive in 2007 with a vision to offer index solutions in a flexible, swift and cost-efficient manner as the industry has seen a significant reallocation of assets under management from active to passive investment strategies amounting to USD3.8 trillion over the past decade. Solactive has grown rapidly and profitably since its founding days, with plans for continued expansion of its products and services.
“The indexing market continues to be highly dynamic with the ongoing active-to-passive shift and the diversification of passive investment strategies, which we believe is driving significant growth for index-linked investment products,” says Johannes Grefe, a Principal with Summit Partners who will be joining the Solactive Board of Directors. “Steffen and the Solactive team have recognised and responded to this trend with a highly automated and customer-centric approach based on a robust technology platform. With a strong combination of vision, product and client reach, we believe Solactive is well positioned to continue its innovative disruption of the indexing market.”
Solactive serves its global customer base from its headquarters in Frankfurt am Main, Germany, and offices in Toronto, Hong Kong, Berlin and Dresden. The company employs more than 250 employees, representing 38 nationalities working together on three different continents. Solactive plans to continue expanding its diverse and talented team, with new hires that exhibit the spirit, drive and skill set shaping the Solactive DNA.