BlackRock invests in German fintech firm targeting new investors

BLACKROCK has taken a minority stake in a German digital wealth business as the world’s largest asset manager seeks to broaden its reach to first-time investors in Europe.

The New York-based firm led a 30 million euros (S$43.35 million) funding round for Upvest, a Berlin-based fintech that provides settlement and custody infrastructure for digital wealth management. It participated alongside Upvest’s existing backers Bessemer Venture Partners, HV Capital, Earlybird, Notion, ABN Amro Ventures and 10x Capital.

The investment will help BlackRock tap Upvest’s software platform, which enables investors with as little as one euro to access products across asset classes, including exchange-traded funds (ETFs).

ETF savings plans have fuelled a big part of the growth in a new generation of first-time investors, whose number is set to reach roughly 20 million by 2026 across Europe, from 4.9 million two years ago, according to BlackRock. Germany is one of the company’s main areas of focus in the continent.

BlackRock, which oversees US$9.4 trillion, has been increasingly seeking to transform itself into a one-stop-shop for investors across asset classes, as well as providing tech, data, analytics and financial markets advice to clients. BLOOMBERG