FinAnalytica Inc., provider of post-modern risk management and portfolio construction analytics, today announced that New Europe Venture Equity (NEVEQ) has invested US$5.0 million in the firm.
The announcement follows a period of accelerated growth during which the company has focused its Cognity platform on returns-based portfolio analysis for funds of hedge funds and other multi-manager investment firms. The investment will enable FinAnalytica to substantially expand sales and marketing internationally, as well as support new product development.
FinAnalytica's CognityFoF provides risk managers and portfolio managers deep and accurate insights into sources and characteristics of the risk in their portfolios. It also supports downside risk portfolio optimization, providing managers guidance in the allocation process.
According to Pavel Ezekiev, Managing Partner at NEVEQ, "We are impressed with FinAnalytica's evolution to date, along with the strength of its Cognity portfolio risk and allocation platform. Cognity's unique use of down-side risk management based on accurate models for asset returns has the potential to revolutionize how portfolio managers allocate their investments and measure their risks. With its Sofia-based research and development team, and the enhanced ability to accelerate business development across key accounts in the US, London and Zurich, FinAnalytica is the perfect addition to our portfolio."
"Demand for the next generation of portfolio allocation and risk analytics is on the rise. As a result, we are seeing significant growth opportunities in the broad fund-of-funds market, where use of traditional approaches to portfolio construction and risk management are inadequate," said R. Douglas Martin, Founder and CEO of FinAnalytica. "The NEVEQ investment will help us strengthen our position and expand our reach geographically as well as into new market segments."