Earlier this week, EQT announced that it was acquiring Saxo Payments Banking Circle (Banking Circle). This was a different kind of deal for the EQT Ventures fund as it joined forces with EQT VIII, which will have majority ownership, and in partnership with Banking Circle’s founders and other co-investors. I know what you’re thinking — and you’re right! This isn’t a typical type of deal for EQT Ventures, so why participate in this acquisition?
The Ventures team is all about backing founders with the ambition, drive and vision to build a global success story. We say this over and over again, but EQT Ventures isn’t here to build good local businesses — we want founders to think bigger! Anders la Cour and Laust Bertelsen, Banking Circle’s co-CEOs and founders, are doing just that. The team is building the next generation infrastructure for cross-border payments and Anders and Laust have their sights set on building the first global clearing hub.
Then there’s the market opportunity. The cross border payments market is not only huge, but growing rapidly due to the increasing need for faster and less costly payments, compliance, and transparency. Consequently, it’s one of fastest growing segments of the payments ecosystem.
Today, just a couple of years after launch, Banking Circle is processing around €60 billion run-rate annual payment volumes for several high-profile customers using direct clearing access through partnerships with blue-chip partner banks. The customer feedback on the platform is excellent and the company’s triple digit growth is clear evidence of the traction.
By partnering with EQT on the acquisition, Banking Circle will now be able to leverage the wealth of knowledge across the platform. This includes deep TMT sector expertise, local presence and EQT’s global network of Industrial Advisors. The full EQT advisory team is looking forward to support Banking Circle on the next phase of its journey, continuing its rapid growth and innovation.