The global market for private capital has grown at an approximately 12% CAGR for the last decade to over $13 trillion of assets under management in 2024. Private markets are evolving to become increasingly globalized and complex, and, as a consequence, the “Office of the CFO” at private funds has had to take on a significantly broader and more complex mandate. Private capital CFOs and their teams now have to manage multi-currency exposures, navigate interest rate volatility, ensure regulatory compliance, optimize fund financing, and oversee liquidity and treasury operations.
Lean finance teams at private funds aren’t designed to manage sophisticated treasury risk functions, so there is increasing demand for technology and specialized services to help manage financial risk and bring operational efficiency to the middle-office.
Against this backdrop, we’re thrilled to lead a significant growth equity investment in Validus Risk Management, a leading software and tech-enabled services platform for financial risk management. Validus empowers CFOs to make proactive decisions to safeguard returns from market volatility.
Validus is purpose-built for the idiosyncrasies of private markets investing, like long-hold periods, illiquid assets, and event-driven and fund-level exposures. The company has become a trusted partner to marquee names within private credit, private equity, real estate, infrastructure, secondaries and LPs, representing an aggregate AUM of $3.2 trillion across 750 individual funds.
Validus’ comprehensive and innovative solutions cover a range of treasury risk functions, including: currency and interest risk management, fund finance, regulatory reporting, ISDA and counterparty management.
Underpinning its tech-enabled services is Horizon, Validus’ proprietary software platform that empowers private fund CFOs and treasury teams with advanced analytics and automated workflows for managing FX and interest rate exposures, monitoring hedge portfolios, placing trade orders, and forecasting liquidity and cash needs.
With this investment, Validus is poised to deepen its well-established market position in the UK and Europe, expand its reach into the US and APAC, accelerate product innovation and go-to-market, and continue building out its world-class risk management team. We look forward to bringing to bear the FTV Capital platform, including our vast network of relationships across the private capital ecosystem, as well as our experience in successfully scaling technology companies across the private markets and Office of the CFO landscape, like Apex Fund Services (acquired by Genstar), BillingPlatform, Centaur (acquired by Waystone Group), Enfusion (acquired by Clearwater Analytics) and Strata Fund Solutions (acquired by Alter Domus).
To Kevin Lester (CEO and co-founder), Haakon Blakstad (chief commercial officer) and the entire Validus team, welcome to the FTV portfolio. We’re excited to help power your vision to be the most advanced technology platform for private markets risk and treasury management.
