The US financial technology company Halo Investing raised more than $100 million in funding from California-based venture capital and private equity firm Owl Capital and Abu Dhabi Catalyst Partners, which is backed by Mubadala Investment Company.
The funding round, known as Series C, involved participation from the company’s existing investors Allianz Life Ventures and William Blair.
The company has raised $120m since its inception in 2015.
The start-up will use the new capital to fuel its expansion into new asset classes and enter new markets. It will “expand, disrupt and democratise access to innovative protective investment options” that can increase savings and investment returns for individuals, the company said.
“We are building a one-of-a-kind technology platform to level the playing field for investors,” Biju Kulathakal, co-founder and chief executive of Halo said.
“Our platform provides easy and transparent access to investment solutions that can help solve … savings crisis. The future of investing is outcome-based. We are proud of the impact we are making in helping individuals secure their financial futures.”
The global FinTech market is expected to reach $324 billion by 2026, growing at an annual rate of 23.4 per cent, research company Market Data Forecast said.
Chicago-based Halo is a technology-driven platform that offers protective and low-cost investment solutions to its clients and has offices in ities including Abu Dhabi, Zurich, Dubai and Singapore.
It enables investors to achieve a level of certainty in their portfolios with the added benefit of downside investment protection, Jason Barsema, co-founder and president of the company said.
The start-up has grown nearly 550 per cent on an annualised basis in the past year and has onboarded more than 40 global banks and carriers over the last two years, the company said, without disclosing the exact figures.
“With the support of our latest funders, we are expanding our global footprint and broadening access to all defined-outcome products. We have a radical new vision to change the way the world invests and have very ambitious goals to support everyday investors and their financial advisers,” Mr Barsema said.
“We are proud to partner with Halo and support its international growth from ADGM [Abu Dhabi Global Market], which has attracted a strong and growing base of global capital markets companies,” James Munce, chief executive of Abu Dhabi Catalyst Partners said.
“Our investment in Halo is another example of our commitment to partnering with businesses that will fundamentally disrupt their respective industries and strive to create more efficient markets.”
Established in 2019, $1bn Abu Dhabi Catalyst Partners is a joint venture between the emirate’s strategic investment arm and sovereign wealth fund Mubadala Investment Company and US alternative asset manager Falcon Edge Capital. It partners with businesses that aim to benefit from establishing a strategic presence at ADGM.
Halo will also open an office at ADGM to "drive the growth of its international footprint", the company said.
“Halo’s independent platform enables advisers to help individuals effectively manage risk and generate guaranteed income in retirement … we are pleased to partner with Halo and play a key role in their expansion,” Jasmine Jirele, president and chief executive of Allianz Life said.