Flagstone, a London, UK-based cash deposit platform, received £108m ($138m) equity investment from Estancia Capital Partners.
Under the terms of the deal, Estancia takes a minority stake in the Flagstone business. Estancia’s Takashi Moriuchi and Keegan Mitchell will join the Flagstone Board of Directors. Darrin Jeffries will be a Board Observer. The transaction is expected to close in the second quarter of 2024 after receipt of necessary regulatory approvals.
The deal combines primary and secondary investments. The primary investment will be used to further consolidate the company’s position in the cash deposit market. The secondary investment will be used to reward Flagstone’s earliest backers, enabling them to realise a significant return on their investments.
Co-founded by Andrew Thatcher and Simon Merchant in 2015, Flagstone provides a service-driven fintech platform that helps UK savers make their money work harder. Individual savers, small and medium-sized enterprises (SMEs) and charities using the solution – either directly or through multiple fintech platforms, financial advisers or brand partnerships – to access over 200 savings account offerings available from 60 of the UK’s cash savings providers, from the largest incumbent banks to the challengers. Flagstone partners with many of the UK’s leading wealth management firms, including St. James’s Place, powers a range of savings products at financial services providers, including Saga and Revolut, and through its international subsidiary, has already put in place a number of distribution relationships outside of the UK.
Serving a customer base of over 600,000, Flagstone’s total Assets under Administration (AUA) now stand at more than £11 billion.
FinSMEs
11/03/2024