Investment management platform Jacobi raises $11 million for European expansion

Jacobi co-founders Greg Knox, Tony Mackenzie, and Tanya Bartolini. Source: supplied

• The Brisbane investment technology platform has raised AU$11 million from US investors 

• Client base includes sovereign wealth and retirement funds, and asset and wealth managers with more than $1.5 trillion in assets under management

• Expands internationally with launch of UK office to target Europe. 

Investech platform Jacobi Inc. has raised AU$11 million from US investors, led by Silicon Valley VC firms Illuminate Venture Partners, 8VC and Credit Ease Venture Fund.

Founded in Brisbane in 2014 by a trio of regional Queensland financial executives who worked for the likes of the Queensland Investment Corporation, JPMorgan, BlackRock and Colonial First State, Jacobi’s clients include sovereign wealth funds, retirement funds, asset and wealth managers and investment consultants who have combined assets under management of more than AU$1.5 trillion.

The business is now has its HQ in San Francisco, while maintaining a Brisbane presence and recently opening in London.

This raise will be used for development of the Jacobi platform and European expansion after the business recently signed up several large institutional investment managers.

Jacobi is a cloud-based platform for multi-asset portfolio design, risk modelling, and client engagement.

Co-founder Tony Mackenzie said the fintech startup’s client base was expanding at a fast pace.

“This is due to a greater focus on portfolio construction and risk which has largely come as a result of regulatory change,” he said.

“Investors are now more focused on asset allocation and client outcomes than ever before, and they require flexible technology that is purpose built for the multi-asset investor”.

The success of his product he puts down to investment technology that reflects the client’s investment approach, not the other way around.

“Jacobi’s solution allows clients to customise the platform, such as incorporating their own investment models, risk engines, forward projections and dashboard needs. This allows clients to scale and simplify their entire investment process,” Mackenzie said.

Illuminate Venture Partners, founding partner and MD Cindy Padnos said three key parameters drove their investment decision for Jacobi among the thousands of propositions they consider annually: team, technology and trends.

“We saw a super talented team with deep domain knowledge in the area cross-asset risk management – a thorny problem that remained virtually unaddressed by existing solutions,” she said.

“Equally important, they had built an elegantly designed set of offerings that were useful not just for asset managers, but that could also be put directly into the hands of the clients they served. When you add in the growing demand for improved investment reporting transparency and better client interaction tools, our decision to invest was obvious”.

 Jacobi also kicked local goals recently when it signed a partnership with investment consultant JANA Investment Advisers.