A new platform set to revolutionise the fund industry

Writer Laura Campan

Offering an easy access to decision-makers in both public and private sectors, as well as a dedicated support to over 700 startups and 15 incubators, Luxembourg is arguably a flourishing ecosystem worth watching. So, what are the new FinTech gems to follow in 2023?

This week, our team went to meet fundcraft Founder and CEO Julien De Mayer.

How would you pitch your startup in a few lines? 

Fundcraft’s mission is to revolutionise the fund industry by creating the digital infrastructure for asset managers allowing them to focus on their core business: fundraising and investing.

To achieve this, we are developing and operating our proprietary platform that fully centralizes all fund back-office operations and stakeholders. This generates efficiency, transparency, and control for our clients in their day-to-day fund operations. Being a CSSF-licensed AIFM and central administrator, we co-operate our platform with our clients providing them with the necessary expertise and regulatory compliance they need. We are the natural partner of venture capital and funds of funds, as well as asset managers “democratising” the access to private equity.

For the moment, we have more than €5 billion in assets managed on our platform and employ more than 80 people across our two offices in Luxembourg and Spain, and we’re growing quickly!

How did such an idea come up?

Before founding fundcraft, I worked on the client-side of fund services and became frustrated with the industry’s systemic issues. Traditional service providers work in people-based, siloed structures. Each department processes the same information but doesn’t use common tools and databases. This results in repetitive information requests and the need to reconcile and consolidate data. Seeing a need for a better, more scalable solution using technology, I created fundcraft to centralise, digitise, and automate back-office operations and promote a new way of working where asset managers gain transparency and control over their fund operations.

Which are your investors? 

Our investors are institutional investors as well as individuals and family offices, some of which have deep roots in the Luxembourgish financial services industry. We appreciate the confidence and support of our investor base very much and maintain a very close and transparent relationship with them.

What sets you apart from competition? 

There are two main aspects: technology and pricing.

Our custom-built platform serves as a real-time collaborative environment for our clients, fundcraft experts, and our clients’ other stakeholders. This allows for real transparency and control. It enables self-service, parallelisation of work, efficiency gains in all functions, and a central storage of all knowledge related to the clients’ structures.
Pricing, we believe, needs to be predictable and value-based, which is why we offer one single fixed fee on the fund’s deployed capital. Our goal is to keep invoices simple and fully transparent.

Any news you would like to share? – on a fruitful partnership for instance, a disruptive product you’re working on, an anecdote when creating your firm etc.

Well, as we are a very fast-growing company, there is great news every day or at least every week. What we are particularly proud of is that we deliver on our promises. When starting out, we promised we would secure a big client within the first year and so we did. Within the first year of operations, we secured another 9 clients which we have fully onboarded or going through the final stages of migration. In Q1 2023, we even overachieved our revenue and operational profitability targets. And every time we achieve our goals, we set the bar higher for the next goals.