We are excited to announce our pre-seed investment in Crescenta as lead investors, joining forces with FJ Labs and a select group of strategic angels. Crescenta has embarked on an inspiring mission to digitize and democratize access to private markets such as PE, VC, infrastructure and private debt, as the appetite for this asset class grows. They're creating a digital, centralized platform that caters to both professional and retail investors, offering them access to top tier products while providing educational resources along the journey.
As a pre-seed company, we could not be happier to partner once again with a two-time portfolio founder, Eduardo Navarro, and confident of what we value most at this stage: founder-market fit. Besides co-founding Urbanitae in 2017 with Diego Bestard and Jorge Gutiérrez (a Kfund portfolio company offering real estate investing via crowdfunding) Eduardo built his career in private equity, founding Sherpa Capital, a leading Spanish PE fund. Joining him as CEO is Ramiro Iglesias, experienced operator as well as investor, working in investment for over 10 years, and together they bring years of experience and know-how, favorably positioned to navigate this industry.
Our investment in Crescenta was sparked by a few key elements. Firstly, we're excited by the promising market dynamics. Despite macroeconomic challenges, global AUM in private markets reached $11.7T in H1 2022 and is expected to grow at a CAGR of 12% for the next five years.
Interestingly, a paradox haunts Europe’s private market landscape with only 2-3% of European private client assets allocated to private equity. This isn't due to a lack of demand, but rather a scarcity of accessible products. Regulatory hurdles and outdated offerings from asset management firms have resulted in a landscape characterized by high minimum investments, long-term illiquidity, and a lack of transparency.
Spain is no exception to this trend. While demand for private equity is on the rise, access to this asset class remains largely confined to high-net-worth individuals or experienced investors. Consequently, this leaves a growing pool of retail investors largely underserved and points to a massive untapped potential for democratizing access to private markets. While Crescenta aims for pan-European expansion, their initial focus on the Spanish market is both strategic and opportunistic. Strategically, the founders' local expertise provides a tangible competitive edge, in both accessing supply and packaging products that cater to the local appetite, but also in partnering up with banks and other B2B2C players that can leverage Crescenta’s offering for their own client base.
Opportunistically, the recent implementation of the Crea y Crece Law, has lowered the minimum investment amount in private markets from €100,000 to €10,000, opening up this historically high-risk, high-return asset class to a whole new target group: retail investors. As a first mover in Spain, Crescenta's platform is perfectly positioned to capitalize on this regulatory shift and lead the charge in this new age of investment.
One aspect of Crescenta's mission that particularly resonated with us, is their dedication to fostering financial literacy among a new wave of investors. With a blend of easily digestible content, an intuitive user friendly interface, and a fully digital onboarding process, Crescenta aims to empower retail investors to make well-informed decisions. This is achieved by improving their understanding of the risks, opportunities, and dynamics involved in investing in this asset class. As investors ourselves in this high-risk sector, we wholeheartedly agree with the need to educate the market, which aligns with Crescenta's unwavering commitment to this goal. By adopting this comprehensive approach, Crescenta not only enriches the investment experience, but it also cultivates a more knowledgeable and confident pool of investors. In an industry often known for its complexity and exclusivity, Crescenta's focus on education is a game changer. We are ready to support them in this important endeavor.
Family offices and HNWIs will also enjoy the benefits of Crescenta, through Crescenta Alpha, a dedicated tool that centralizes the management of their entire investment portfolio. Offering a consolidated overview on individual portfolios, including cash flow estimates, metrics, graphical visualization of results, relevant fund news, tax reports, and more, we believe Crescenta Alpha has the power to simplify and optimize investment processes and portfolio management for these investors, becoming a one-stop shop for all things investment.
Here is the link to their career’s page in case you would like to join them in this journey!
We are excited to announce our pre-seed investment in Crescenta as lead investors, joining forces with FJ Labs and a select group of strategic angels. Crescenta has embarked on an inspiring mission to digitize and democratize access to private markets such as PE, VC, infrastructure and private debt, as the appetite for this asset class grows. They're creating a digital, centralized platform that caters to both professional and retail investors, offering them access to top tier products while providing educational resources along the journey.
As a pre-seed company, we could not be happier to partner once again with a two-time portfolio founder, Eduardo Navarro, and confident of what we value most at this stage: founder-market fit. Besides co-founding Urbanitae in 2017 with Diego Bestard and Jorge Gutiérrez (a Kfund portfolio company offering real estate investing via crowdfunding) Eduardo built his career in private equity, founding Sherpa Capital, a leading Spanish PE fund. Joining him as CEO is Ramiro Iglesias, experienced operator as well as investor, working in investment for over 10 years, and together they bring years of experience and know-how, favorably positioned to navigate this industry.
Our investment in Crescenta was sparked by a few key elements. Firstly, we're excited by the promising market dynamics. Despite macroeconomic challenges, global AUM in private markets reached $11.7T in H1 2022 and is expected to grow at a CAGR of 12% for the next five years.
Interestingly, a paradox haunts Europe’s private market landscape with only 2-3% of European private client assets allocated to private equity. This isn't due to a lack of demand, but rather a scarcity of accessible products. Regulatory hurdles and outdated offerings from asset management firms have resulted in a landscape characterized by high minimum investments, long-term illiquidity, and a lack of transparency.
Spain is no exception to this trend. While demand for private equity is on the rise, access to this asset class remains largely confined to high-net-worth individuals or experienced investors. Consequently, this leaves a growing pool of retail investors largely underserved and points to a massive untapped potential for democratizing access to private markets. While Crescenta aims for pan-European expansion, their initial focus on the Spanish market is both strategic and opportunistic. Strategically, the founders' local expertise provides a tangible competitive edge, in both accessing supply and packaging products that cater to the local appetite, but also in partnering up with banks and other B2B2C players that can leverage Crescenta’s offering for their own client base.
Opportunistically, the recent implementation of the Crea y Crece Law, has lowered the minimum investment amount in private markets from €100,000 to €10,000, opening up this historically high-risk, high-return asset class to a whole new target group: retail investors. As a first mover in Spain, Crescenta's platform is perfectly positioned to capitalize on this regulatory shift and lead the charge in this new age of investment.
One aspect of Crescenta's mission that particularly resonated with us, is their dedication to fostering financial literacy among a new wave of investors. With a blend of easily digestible content, an intuitive user friendly interface, and a fully digital onboarding process, Crescenta aims to empower retail investors to make well-informed decisions. This is achieved by improving their understanding of the risks, opportunities, and dynamics involved in investing in this asset class. As investors ourselves in this high-risk sector, we wholeheartedly agree with the need to educate the market, which aligns with Crescenta's unwavering commitment to this goal. By adopting this comprehensive approach, Crescenta not only enriches the investment experience, but it also cultivates a more knowledgeable and confident pool of investors. In an industry often known for its complexity and exclusivity, Crescenta's focus on education is a game changer. We are ready to support them in this important endeavor.
Family offices and HNWIs will also enjoy the benefits of Crescenta, through Crescenta Alpha, a dedicated tool that centralizes the management of their entire investment portfolio. Offering a consolidated overview on individual portfolios, including cash flow estimates, metrics, graphical visualization of results, relevant fund news, tax reports, and more, we believe Crescenta Alpha has the power to simplify and optimize investment processes and portfolio management for these investors, becoming a one-stop shop for all things investment.
Here is the link to their career’s page in case you would like to join them in this journey!
