Investment technology platform Jacobi has raised AU$11 million from prominent US investors. The capital raised was led by Silicon Valley venture capital firms, Illuminate Venture Partners, 8VC and Credit Ease Venture Fund.
Jacobi is a cloud-based technology platform for investment portfolio design and engagement, founded in 2014 by former QIC executive Tony Mackenzie, Tanya Bartolini and Greg Knox. All hailing from regional Queensland.
The funds will be used to support further development of the Jacobi platform and expansion into new markets. With a global clientele in Australia, North America, Asia and Europe, representing combined assets under management of over $A1.5 trillion. Jacobi’s clients include sovereign wealth funds, retirement funds, asset and wealth managers and investment consultants.
“Jacobi’s global client base continues to grow 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. 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,” said Jacobi co-founder, Tony Mackenzie.
“We believe that investment technology needs to reflect 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.”
Jacobi will now extend its focus to the European market after signing a number of large institutional investment managers. The capital raise also coincides with the launch of Jacobi’s office in London, building on locations in Brisbane and San Francisco.
“At Illuminate we see over 1,000 investment opportunities a year and invest in only a handful. Three key parameters drove our decision to work with Jacobi: 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,” said Cindy Padnos, Founder & Managing Partner of Illuminate Venture Partners.
Padnos said Jacobi’s offerings 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.”