Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) specialist Calculus Capital has invested £2.5m in fintech company Essentia Analytics, a leading provider of behavioural data analytics and consulting for professional investors. The investment by Calculus will be used to further develop Essentia’s services as it scales its client base of investment management institutions around the world.
The firm’s Essentia Insight service – which is used by clients including active fund managers, chief investment officers, asset allocators and wealth managers – provides a continuous data-driven feedback loop, similar to those used by athletes.
To date, Essentia has helped clients managing more than £30 billion in aggregate assets uncover an average of 94 basis points per annum of extra “behavioural alpha” through its proprietary process and technology.
The technology, which has a significant machine learning component, looks at all of an investor’s past trading decisions and rapidly identifies statistically-significant patterns of behaviour that have impacted performance in the past. Essentia then helps the investor realise that additional performance through a combination of regular face-to-face sessions with one of Essentia’s team of Insight Partners, all of whom are former portfolio managers, and automated, tailored ‘nudge’ notifications.
With offices in London and New York, Essentia was founded by CEO Clare Flynn Levy, who formerly ran pension funds for Deutsche Asset Management and founded a hedge fund business.
Flynn Levy said: “We are delighted to have Calculus on board. Their investment and expertise come at a hugely important time for us. Asset managers face increasing pressure to prove their alpha-generating skill and improve performance, which provides a significant opportunity for us to continue growing and developing our service. We are very much looking forward to working closely with Calculus to achieve our mission of helping human investors make measurably better decisions.”
Alexandra Lindsay, investment director at Calculus Capital, who has been appointed to Essentia’s Board of Directors, said: “The team at Essentia have a wealth of experience in the worlds of investment, technology and behavioural science and that knowledge is reflected in the quality of their service.
“Their combination of innovative behavioural analytics, automated ‘nudges’ and face-to-face consulting helps asset managers to make measurably better investment decisions.
“That’s an attractive proposition and we believe that Essentia is a company with very strong growth potential.”
Essentia Analytics was advised by PwC and White Horse Capital and was part of their first Series A Raise accelerator programme.
About Calculus Capital
Calculus Capital is a specialist in creating and managing private equity funds for individuals. A pioneer in the Enterprise Investment Scheme (EIS) space, Calculus launched the UK’s first HMRC-approved EIS fund in 1999 and has gone on to launch a further 19 EIS funds and five VCT share issues to date. Calculus seeks capital appreciation from dynamic, established, private UK companies across a multitude of sectors. Calculus prefers to invest £2m-£5m per company. As at 5th April 2018 it had £169m of funds under management of which 95% is in EIS.
Calculus Capital’s experienced investment team, diligent investment process and ‘hands on’ approach have resulted in an impressive track record of investment success. Calculus has earned multiple awards, most recently being named ‘Best EIS Investment Manager’ at the Growth Investor Awards 2018, an award it also won in 2016. In addition, the company won the EIS Association’s ‘Fund Manager of the Year’ Award in 2016, 2015, 2014, 2011 and 2009. Calculus also won the award for Best Generalist EIS at the Tax Efficiency Awards in 2017.
Calculus Capital is authorised and regulated by the Financial Conduct Authority.
About Essentia Analytics
Essentia Analytics is a leading provider of behavioural data analytics and consulting for professional investors. Led by a team comprised of experts in investment management, technology and behavioural science, Essentia combines next-generation data analytics technology with human coaching to help active fund managers measurably improve investment decision-making. Founded in 2013, the firm has repeatedly been recognised as a leading FinTech provider by financial technology and investment industry publications and associations. Essentia is headquartered in London and has an office in New York City – click here for more information
Notes to Editors
For more information contact Madeleine Ingram, Calculus’s Head of Marketing and Investor Relations, on 0207 518 8058 or email@example.com
Or, Malcolm Jones at Bulletin PR on 0115 907 8412 or firstname.lastname@example.org
For Essentia: Suzanne Hallberg, Zip Communications, 00-1-212-787-0169 or email@example.com