US FinTech Halo Investing raises $100m to grow and enter new markets

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 it was founded 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, it said.

“We are building a one-of-akind technology platform to level the playing field for investors,” said Biju Kulathakal, co-founder and chief executive of Halo.

“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, according to research company Market Data Forecast.

Halo, based in Chicago, is a platform that offers protective and low-cost investment to its clients and has offices in cities 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, said Jason Barsema, co-founder and president of the company.

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 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,” Mr Barsema said. ”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.”

“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,” said James Munce, chief executive of Abu Dhabi Catalyst Partners.

“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 presence at ADGM.

Halo will also open an office at ADGM to “drive international growth”, 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,” said Jasmine Jirele, president and chief executive of Allianz Life.

The global FinTech market is expected to reach $324bn by 2026, growing at an annual rate of 23.4%