Solactive secures €50mn minority investment from Summit Partners

By Megha Bhattacharya

Germany-based provider of indices and index solutions, Solactive has secured a €50 million minority investment from growth equity firm Summit Partners. The new funding is expected to accelerate the company’s global growth, help in the expansion of product offerings and development of its technology platform and team.

“We are proud to be one of the fastest growing index providers in the world and widely regarded as a disruptor in the global index market,” said Steffen Scheuble, Founder and CEO of Solactive. “We are excited to join forces with Summit Partners and work together to further accelerate our journey. Summit brings significant experience in the technology and financial services sectors, as well as deep resources in supporting the expansion of our businesses across products, regions and client segments.”

Founded in 2007, Solactive offers customised index solutions for ETFs and other index-lined investments across equity, fixed income and multi-asset class strategies. The company’s solutions are used by around 400 international clients, including investment banks, ETF providers, hedge funds, asset owners and asset managers. It is headquartered in Frankfurt am Main, Germany, and has offices in Toronto, Hong Kong, Berlin and Dresden.

“The indexing market continues to be highly dynamic with the ongoing active-to-passive shift and the diversification of passive investment strategies, which we believe is driving significant growth for index-linked investment products,” said Johannes Grefe, a Principal with Summit Partners who will be joining the Solactive Supervisory Board. “Steffen and the Solactive team have recognized and responded to this trend with a highly automated and customer-centric approach based on a robust technology platform. With a strong combination of vision, product and client reach, we believe Solactive is well positioned to continue its innovative disruption of the indexing market.”