Brad Bernstein, Managing Partner at FTV Capital — Private Equity in Fintech
Brad and I cover a range of topics, including:
What Drives FTV Capital’s Success:
Brad opened FTV’s New York office 19 years ago. Since that time, the team has achieved incredible success including closing a $2.3B fund earlier this year. Brad credits four main principles for FTV’s success: domain expertise, strategic network, proactive sourcing, and operational excellence. The team has been focused on the intersection of enterprise technology and financial services from its inception. This intense focus helped them become thought leaders in the space, and cultivate a network of operating executives to drive value for their portfolio companies. More recently, FTV has added a proprietary software program to assist in sourcing, helping them actively track 20,000 companies and speak with 5,000 companies per year. Finally, FTV has also added an operating team, FTV Propel, to help founders apply best practices throughout the various functions in their companies.
Brad and I dive deeper into three investments the team has made recently:
- Enfusion: Enfusion is a provider of fully hosted front- to back-office solutions for hedge funds and asset managers, including execution, order management, portfolio management, risk, GL accounting, reconciliations, reporting and data warehouse. FTV had a thesis around the need for better technology in asset management, and identified Enfusion as the only company with an end-to-end software solution. The company went public last October at one of the highest multiples seen in the fintech landscape.
- Plate IQ: Plate IQ was the first investment out of FTV’s Fund VII. It is a restaurant and hospitality accounts payable (AP) automation and payments platform. By leveraging its network, FTV was able to bring in a new chairman and CEO to help the company reach new heights.
- Paddle: Paddle is a Revenue Delivery Platform for SaaS companies that powers rapid growth across customer acquisition, renewals and expansion by enabling checkout, invoicing, payments and tax compliance in one unified platform. Paddle is headquartered in London and focuses heavily on multi-currency and cross-border offerings.
- LoanPro: LoanPro is a SaaS-based loan management, servicing and collections platform for alternative, fintech and traditional lenders. The company was founded by three brothers in Utah, who raised no institutional money until working with FTV.
- EBANX: EBANX is a cross-border payment processing company that offers Latin American local payment methods to international merchants, enabling them to sell their products and services to Latin America. With the explosion of eCommerce over the past two years, EBANX has been able to grow very quickly, becoming a powerhouse in Latin American payments.
Exciting Trends in Fintech:
Brad highlights a couple of areas within fintech that he is particularly excited to see play out, including low-code/no-code software solutions, AI embedded in eCommerce solutions, embedded insurance, and procurement outsourcing.
Brad is managing partner and has been a growth equity investor at FTV Capital for over 18 years, leading investments in enterprise technology & services and financial services. Brad has over 25 years of private equity experience. Prior to FTV, Brad was a partner at Oak Hill Capital Management and its predecessors where he managed the business and financial services group. He began his private equity career with Patricof & Company Ventures and started his professional career in the investment banking division of Merrill Lynch in New York.
About the Author:
Anirudh Singh is a second-year MBA Candidate at The Wharton School, where he is part of the Wharton FinTech Podcast team. He has a passion for economic development, venture capital, financial services, and all things FinTech. Don’t hesitate to reach out with questions, comments, feedback, and opportunities at firstname.lastname@example.org.
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