ALLVP led a US$6m Series A in investment portfolio robo-advisory platform Alkanza. The round also includes participation from Colombia’s Grupo Sura/Veronorte Ventures, as well as an unnamed UK-based global leader in asset management.
(Press Release) ALLVP announces its investment in the Series A financing round of robo-advisory platform Alkanza, alongside strategic co-investors Grupo Sura/Veronorte and UK-based global leader in asset management. Targeting the untapped opportunity of wealth management in Latin America and other international markets, Alkanza offers automated portfolio advisory services to clients of financial institutions in Brazil, Mexico, Colombia and the US. The company builds an optimal investment portfolio made up of ETFs based on clients’ individual goals, through the use of advanced algorithms and mathematical models.
Over the last decade, the wealth management sector has experienced unprecedented growth. In Latin America alone, assets under management (AUM) reached an all-time high of US$1.9t in 2015. Adding to the industry’s accelerated growth, increased competition is driving traditional wealth managers to attract a new customer base within the emerging middle class and the digitally savvy millennial population. The upturn in investor appetite for digital services in recent years is expected to consolidate as AUM by robo-advisory platforms are estimated to grow from US$0.2t in 2016 to US$8.1t in 2020, a striking 4,000% growth in less than 5 years.
Alkanza aims to leverage these trends, by partnering with financial institutions worldwide to offer their clients an efficient investment solution that provides attractive returns at a time when global market yields are at a record low. To date, Alkanza has secured partnerships with seven leading financial institutions, expanding its geographic reach to serve clients not only in Latin America, but also in Taiwan and South Africa. Fernando Lelo de Larrea, ALLVP Managing Partner, commented on Alkanza’s bet on emerging markets: “With a superior user experience and a proprietary investment management technology that has produced off-the-charts performance, we believe Alkanza is positioned for success in the emerging market’s growing wealth management sector.”
Seasoned entrepreneur and MIT & Stanford graduate, Andrés Villaquiran, founded Alkanza in late 2014. Since launching, the company has created an engaging and intuitive investment platform, developed partnerships with multiple financial institutions and experienced solid upward traction. “We are very proud to partner with ALLVP as a strategic investor in Alkanza. We are confident the firm’s broad network and deep knowledge of the Latin American fintech market will prove invaluable as Alkanza scales its robo-advisory services to clients in Mexico and Latin America”, commented CEO Andrés Villaquiran on partnering with ALLVP.