Next-generation asset management firm equation AG has today announced the acquisition of Betterfront Technologies to re-invent the archaic fundraising process in Private Markets and to facilitate liquidity for Venture Capital and Private Equity investors.
Betterfront allows fund managers to visualize their track record and connect seamlessly with their investors via a smart data room. Since its inception in 2019, the company supported emerging and established fund managers in raising more than €4B with its all-in-one fundraising platform. On a global level, and despite macro-economic and geopolitical challenges, $1+ trillion has been raised in each of the last six years, with expectations for Private Markets to reach $18.3 trillion in AuM by 2027 (Preqin).
equation AG was founded in 2020 on the premise of data-driven, technology-enabled decision making and is an active investor across primary and secondary transactions. Both equation and Betterfront believe in the power of data as the key component to drive transparency and greater adoption of Private Market investments. The partnership advances fundraising speed and efficiency for fund managers while allowing them full control of the data they are sharing. As a natural extension, the Betterfront platform enables fund managers to offer Limited Partner secondary stakes on its digital marketplace – a crucial solution to provide more liquidity options at a time when distributions to Limited Partners have reached a record low. The volume of secondary transactions reached $108B in 2022, up from only $20B in 2008. With $220B in dedicated available capital, the secondary market is expected to continue its growth trajectory as Limited Partners demand and General Partners want to provide more liquidity.
Michel Geolier, Co-founder and CEO of Betterfront Technologies GmbH:
“I am very excited to join forces with the exceptional team at equation. Like Betterfront, they truly believe that analytics enable superior investment decisions and are the key to success in Private Markets. This acquisition helps us accelerate the development of our platform and deliver even more product value to fund managers and institutional investors globally. I am grateful for the trust of our team, customers and investors throughout the journey of building Betterfront into a leading fundraising and secondary platform. Today marks a new chapter for Betterfront as well as the beginning of an exciting future for Private Markets.” As part of the transaction, Michel Geolier will join equation as VP of Business Development in its newly established data solutions unit and continues to lead Betterfront as an independent entity in its next phase of growth.
Mark Schmitz, Co-founder and CEO of equation AG:
“As active fund investors in both primary and secondary transactions, we hold the firm belief that Private Markets can become vastly more efficient with the use of data and smart software solutions. Track record analysis is a centerpiece of due diligence, but the lack of standardization makes it unnecessarily hard for capital allocators and fund managers to find common ground. With Betterfront, fund managers can radically improve their fundraising process and provide liquidity to their existing investors, which is often the key to new fund commitments. We are on a joint mission to promote transparency in Private Markets during a time when such investments are essential for economic growth. We have been following Betterfront’s progress since inception and are glad to welcome them to the equation group.”
About equation
equation is a next-generation asset manager in Venture Capital and Private Equity. By uniting latest scientific research and technology, equation has developed a proprietary software platform to enable superior investment decisions in Private Markets. While applying its innovative investment tools, equation has become one of Europe’s most active fund investors with a particular focus on emerging managers across both primary and secondary transactions. The firm was established in 2020 by Mark Schmitz (CEO), formerly a founding team member and Partner at Venture Capital fund Lakestar, and Learn more about equation by visiting equationcap.com
About Betterfront
Betterfront Technologies GmbH is a fundraising and data analytics company for Venture Capital and Private Equity fund managers. The firm was founded in 2019 by former institutional venture investor Michel Geolier, alongside software engineers Sergi Case and Worathiti Manosroi. The company was backed by HTGF, Tiny VC, and several high-profile angel investors. Since its inception, Betterfront has developed a unique solution to analyze, visualize, and share insights about track record performance of fund managers. Customers include leading venture firms such as Cherry Ventures, Cusp Capital, and Partech Partners, and the platform serves over two thousand active fund investors. Learn more about Betterfront by visiting betterfront.io
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