Its founder, Tim Levene, believes that Paris is becoming a major hub for fintech investment and the ideal choice for expansion into continental Europe. Tikehau Capital is increasing its exposure to venture capital by raising its stake in the UK investment firm to 3.9%.
Augmentum is opening an office in Paris, its first in continental Europe. The British investment firm will base its development in the capital on the global platform of Tikehau Capital, which has 12 offices in Europe, the United States and Asia and manages €29.4 billion.
"The combined brand impact of Tikehau Capital and Augmentum will send a powerful signal of intent to the European tech ecosystem", say the two partners.
Specialized in Fintech "innovative and fast-growing"Augmentum intends to take advantage of the positive dynamics and entrepreneurial momentum of the Paris financial center in new technologies.
France has turned a corner
" With Covid-19, France, like the UK, has turned a corner in digital adoption, and Paris, like London, is becoming a major Fintech investment hub. Tikehau Capital is one of Europe's most entrepreneurial and innovative alternative asset managers, and we look forward to working more with the group over the coming years ", says Tim Levene, CEO of Augmentum Fintech.
"Augmentum is a European-focused fund and, although headquartered in London, over 50 % of our deals are outside the UK. France is becoming one of the most interesting Fintech markets in Europe. Year to date, we have seen over €1.5bn of investment in French Fintech, more than in the whole of last year, and we see no signs of slowing down. As we aspire to be one of the most active Fintech investors in Europe, it is natural for Augmentum to expand its physical footprint beyond London. We believe Paris is the ideal choice to help us achieve this goal", Augmentum details.
However, the management company has not yet released any details on its Parisian staff or the timetable for its establishment.
Augmentum claims to be the only venture capital fund in the fintech sector to be listed on the stock market. It listed on the London Stock Exchange in March 2018 after being founded in 2010 by Tim Levene, along with management company RIT Capital Partners and Lord Rothschild, a British banker and politician. Tim Levene began his career at the consultancy firm Bain & Company and helped found Betfair, an online betting site.
Investment in Epsor
By the end of June 2021, the investment firm, which says it helps fintech companies maximize their growth potential, has already backed 22 companies, "with a net present value (NPV) of £183 million (approximately €214 million)". An amount up 35 % over one year.
Augmentum recently invested in Epsor, a French employee savings and retirement fintech. "Epsor serves more than 40,000 savers from over 400 companies in France, providing access to an open ecosystem of asset management products via an easy-to-use digital platform. It has built the largest SRI product offering for employee savings in France, with 14 SRI-labelled funds available to investors. We were very impressed with the team, their differentiated offering which has demonstrated superior financial performance to their peers, and their excellent product"The UK asset management company tells Finascope.
Venture capital exposure
To cement the strategic partnership, Tikehau Capital announced at the same time that it was increasing its stake in Augmentum, of which it now holds 3.9 % of the capital. It has subscribed to its latest fundraising of 55 million pounds (about 64 million euros), which closed on 13 July. This is a way for the alternative asset management company to increase its exposure to venture capital.
The size of the deal had been increased from an initial £40m announced. The shares were issued at 135.5p, a discount of 6.1 % to the price of 144.25p on 11 June, the day before the announcement. On Tuesday, the stock is trading at 150.5 pence.
Pan-European Network
" Beyond the financial investment, this partnership will allow Augmentum to benefit from Tikehau Capital's pan-European network and the Group's expertise in the European fintech sector, where we continue to observe a positive market dynamic "said Antoine Flamarion and Mathieu Chabran, co-founders of Tikehau Capital.
The management teams of Tikehau Capital and Augmentum Fintech have known each other for several years.
Tikehau Capital is already a majority shareholder in two French fintechs, Crédit.fr and Homunity, and a significant shareholder in Australian neo-bank Judo Bank.
The alternative asset management company points out that it is also a shareholder in Ring Capital, a private equity firm specialising in financing digital and technology companies.