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January 22, 2019

Goldman Sachs leads £45m funding round into Nutmeg

By Jamie Crawley

US bank Goldman Sachs is investing £45m in robo-advisor Nutmeg alongside existing partners Convoy, which will be put towards international expansion and new products and features.

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by GlobalData
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The expansion of UK-based Nutmeg, which manages assets of £1.5bn, will include a  launch in financial advisory firm Convoy’s home of Hong Kong.

Launched in 2011 as a fintech wealth management solution, Nutmeg added human advisors to its offering last year, rolling out personalised one-to-one investment advice in October.

Nutmeg: start-up to scale-up

Nutmeg is the UK’s largest robo-advice company, with more than 64,000 customers, but is yet to return a profit, registering losses of £12.3m in 2017.

Despite this, the Goldman Sachs-led investment suggests it is seen as a highly lucrative platform, as Martin Stead, Nutmeg’s chief executive, commented: “This is a vote of confidence in our team, investment proposition and track record, and marks Nutmeg’s transition from start-up to scale-up.

“We look forward to Goldman Sachs’ support and to exploring commercial collaboration opportunities that further accelerate our growth plans. This funding also enables us to expand internationally, with our plug-and-play B2B expansion model, which leverages both our technology and investment capabilities, developed in this highly respected FCA-regulated market.”

Goldman Sachs on the march

Goldman Sachs partner, Rana Yared, who will take a seat on Nutmeg’s board, commented: “Nutmeg has already established itself as one of the fastest growing wealth managers in the UK. We are excited to fuel further growth and innovation through our investment and to support management in their vision of leveraging technology to broaden access to world-class investment solutions.”

The bank’s move is another sign of its aggressive investment strategy, coming only months after the UK launch of its retail banking brand Marcus, which offered the highest interest rate of any retail bank in the UK of 1.5%. 

Goldman Sachs is currently around 18 months into a three-year plan to increase its annual revenue by $5bn.

 

Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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