AnaCap Financial Partners (“AnaCap”), a leading specialist mid-market private equity investor in technology enabled financial services, today announces a majority growth investment into German FinTech fintus GmbH (“fintus”), one of the leading low-code software providers in the Financial Services sector.
AnaCap will partner up with fintus Founder & CEO Benjamin Hermanns and provide significant growth capital, financial sector & technology expertise as well as operational support, as fintus continues its ambitious growth strategy by solidifying its strong position in the DACH region and expanding its low-code banking platform (“fintus Suite”) across Europe. The fintus team will also benefit from significant investment in talent to expand operational capacity and drive sales.
Fintus was founded in 2017 in Frankfurt and has since successfully positioned itself as one of the leading German Software-as-a-Service (“SaaS”) providers for the automation and digitalisation of the financial services sector. Today, the company’s clients already include a double-digit number of Tier 1 to 3 banks and other sophisticated financial services companies, who use its powerful fintus Suite to automate and streamline complex lending processes (from initial contact with customers to assisting with credit decisions and portfolio management), thereby reducing costs and improving overall customer service. In FY’2021, fintus has grown more than 150% year-on-year and is extremely well placed for 2022, with a strong pipeline of new recurring SaaS contracts.
The fintus technology complements existing, core banking systems and enables its customer base to use the low-code platform in an agile and flexible manner to position themselves well in relation to both retail and commercial customers. The easy management and customisation of processes is seamless, with the software interfaces and integration of all available banking information and data broken down into a single, simple and easy to use platform.
The DACH region is well known to AnaCap with the investment in fintus following the recently completed acquisition of WebID Solutions in September of this year, another FinTech company providing leading digital identification solutions to blue-chip German corporates and financial institutions, and an existing technology partner of fintus. These recent acquisitions follow the already successful trajectory of another portfolio company MRH Trowe (“MRHT”), with eleven bolt-on growth acquisitions made to date as part of an accelerated buy-and-build strategy in the large and fragmented German corporate insurance broking market. AnaCap will further leverage its experience from its highly successful buy-and-build strategy for payments company heidelpay (now “Unzer”) across the region and subsequent successful exit to KKR.
Benjamin Hermanns, CEO and Founder at Fintus commented:
“We have had multiple enquiries recently and have been delighted with the interest shown by prominent investment companies. It was very important for us to find a partner who has a strong entrepreneurial mindset and understands software, the financial services industry and FinTech alike. We have found in AnaCap an ideal partner to support the pan-European growth of fintus, leveraging our impressive track record in recent years which we attribute to the commitment of our employees and customers alike.”
Tassilo Arnhold, Private Equity Partner at AnaCap, added:
“We are thrilled to be partnering up with Ben and the team to help drive the next chapter of fintus’ exciting growth story – since its inception in 2017, fintus has managed to win an impressive list of blue-chip SaaS clients, leading to a triple digit annual growth historically. While there is significant room to grow in the DACH market, we also see huge potential in scaling the business across Europe, given the multi-lingual and low code nature of the fintus software. We will invest significant capital to build-out the management and business development team further, while also introducing new distribution channels and exploring opportunistic buy-and-build strategies as well, in line with our other successful DACH investments”
On this transaction, fintus’ shareholders were exclusively advised by IEG - Investment Banking Group (corporate finance) and act AC Tischendorf (legal), whereas AnaCap received advice from GCA Altium (corporate finance), Proskauer Rose (legal advice - London) and Norton Rose Fulbright (legal advice - Munich). The transaction is subject to the usual closing conditions.