Fundcraft

Fundcraft, as a fully CSSF-licensed AIFM and central administrator, is dedicated to creating a robust digital infrastructure for asset managers. Their custom-built platform streamlines and automates fund back-office tasks, enabling asset managers to focus on their core business.
Country of incorporation: Luxembourg

TEAM NAMES, ROLES AND COMPANY CONTACT

Julien De Mayer Managing, Director & CEO | Olga Porro, CPO | Victor Martin, CTO | Martin Enssle, Chief of Staff | Selma Belmejdoub, Head of Fund Accounting | Michel Godefroid, C/O Risk & Valuation | Henning Swabey, Head of Growth | Thomas Pire, Head of Product Operations | Jaume Grané, Head of Engineering

Elevator Pitch

fundcraft is redefining the fund industry with a cutting-edge digital infrastructure that transitions stakeholders to an efficient, asynchronous working model; a stark contrast to the outdated, manual and batch processes of traditional administrators. Since our inception in 2021, fundcraft has been at the forefront of innovation, providing a robust platform that harmonises a multi-user ecosystem of technology and services. Our platform not only streamlines back-office operations but also ensures seamless integration with front office services, establishing a single, reliable source of truth. With fundcraft, experience digitisation as a cornerstone of operations, rapid fund launches, and a transparent, scalable solution tailored to the dynamic needs of asset managers.

Problem Solved

fundcraft is tackling several critical issues that have long been a source of inefficiency and frustration for asset managers (AMs).

  • Legacy Systems and Manual Processing: Incumbent administrators in the sector often operate on heavily customised legacy software, which is not only difficult to update and maintain but also relies heavily on manual processes. This outdated approach is prone to errors and inefficiency.
  • Service Management: Asset managers need to be actively involved in managing services with these systems, which can be labor-intensive and take time away from core investment activities.
  • Cost Structure: Traditional administrators charge a significant fee on assets under management or committed capital, often around 20 basis points, plus additional variable charges based on the number of people working on the processes. This results in unpredictable and sometimes exorbitant costs.
  • Modern Point Solutions: While there are modern solutions available, they often present their own challenges. Some may not fully deliver on their promises, embodying a “fake it till you make it” approach. Others might have modern technology but offer incomplete servicing options, are not multi-asset capable, or address only isolated steps of the value chain. This results in AMs having to take on more work themselves or hire supplementary providers, increasing both cost and complexity.

Solution / Technology

  • End-to-End Seamless Integration: fundcraft offers a solution that integrates technology and services from end to end, streamlining operations and reducing the need for asset managers to engage in the day-to-day management of fund administration.
  • Single Source of Truth: By centralising data and systems, fundcraft eliminates the discrepancies and data silos that often complicate fund management, thus providing a reliable and single source of truth.
  • Innovative Pricing Model: Moving away from the traditional fee structure, fundcraft proposes an innovative pricing model that offers predictability and better alignment with the value provided, as opposed to charging based on committed capital and manual labor.

Market Size

  • A substantial portion of the $40 billion alternatives market.
  • Infrastructure, real estate, private debt, and private equity segments of the market, which together constitute a serviceable addressable market of $20.4 billion.
  • A serviceable obtainable market in European countries such as Luxembourg, Germany, and Spain, amounting to $2 billion, with a notable division between assets less than and over $1 billion.

Relevant Links

www.fundcraft.lu

White Paper

The AI Revolution In Financial Services

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