London-based fintech startup Tradeteq raises $12.5M led by MS&AD Ventures to make private credit and real assets investible

Tradeteq, a London-based fintech startup that facilitates connections between asset sellers and investors in the realm of private debt and real assets, has closed a $12.5 million Seed A plus funding round to help address the acute global lending shortfall.

The round was led by US-based MS&AD Ventures, with substantial investment from fellow venture capital entity Interlock Partners. Both of these prominent investors bring valuable industry expertise to the table and will play pivotal roles in assisting Tradeteq in establishing its operations in the United States. Additionally, they will help reshape the issuance infrastructure to cater to the requirements of U.S.-based investors.

The round was also joined by Victor Ganzi, one of its investors and advisors. Mr. Ganzi’s career includes serving as the CEO of The Hearst Corporation, assuming the role of Chairman at Willis Towers Watson, and acting as Chairman of Foster + Partners, among other accomplishments.

In conjunction with the funding, Tradeteq also announced that Mr. Ganzi will be joining its board as an advisor while Jon Soberg, Managing Partner at MS&AD Ventures, and Harry Hawks, Venture Partner at Interlock, will be joining the board as observers.

Founded in London in 2016 by CEO Christoph Gugelmann, Tradeteq is the leading provider of data, technology, and software to the trade finance and private credit industry. The startup has built a marketplace infrastructure to power private credit investments and helps investment managers and asset sellers efficiently connect, interact, and transact.

This strategic investment marks a significant stride forward in Tradeteq’s mission, particularly as it prepares to enter the largest private credit and securitization market globally, the United States. Since its inception, the company has played a pivotal role by providing a platform for banks to securitize and distribute their trade finance assets to a diverse range of investors. Earlier this year, Tradeteq expanded its primary issuance platform to encompass private credit, simplifying the process for leading global banks and alternative lenders to connect, engage, and transact with institutional investors, including pension funds and insurance companies.

Furthermore, Tradeteq’s workflow automation and securitization-as-a-service model are instrumental in transforming private credit into tradable financial instruments, thereby broadening the pool of potential investors. The incorporation of real-time processing and standardized asset repackaging serves to minimize friction costs and yields higher investment returns. To date, Tradeteq has successfully facilitated the issuance of notes valued at over $2.75 billion.

In a statement, ugelmann said, “We are delighted to have the backing of our new partners. The strategic alliance with MS&AD Ventures and Interlock Partners will be vital as we lay the groundwork for our US operations. In particular, we are extremely pleased to gain the insights and expertise of Victor Ganzi. We were gratified with the participation and continued support of existing investors LGGP and Niya Partners to complete the funding round.

“The combined expertise of our new partners will undoubtedly support our global mission to facilitate transactions between trade finance and private credit originators with institutional investors to help boost corporate lending, which is one of the key factors that will help drive economic recovery.”

Commenting on the funding, Jon Soberg, MS&AD Ventures, said: “Tradeteq is an incredibly exciting business with significant potential to grow and scale. The firm identified the need to streamline the process that transforms diverse pools of assets and risks into tradable securities and developed a solution that addresses this, which empowers asset sellers and investors to connect, access, and distribute private credit and other real assets seamlessly. We believe in Tradeteq’s vision and mission and look forward to collaborating closely as they expand into the US market and beyond.”