Switzerland-based investment banking group UBS is setting up a corporate venture capital fund that will channel ‘hundreds of millions of dollars’ into strategic investments, Bloomberg reported yesterday.
The bank is targeting investments in financial technology developers and intends to provide between $10m and $20m for each deal, according to a person familiar with the matter.
UBS is hiring staff to make up the unit’s founding team and is currently assessing potential investments. It plans to hold on to stakes for roughly five years.
The company is looking to upgrade its digital capabilities and explore the Chinese market, and the vehicle will concentrate on developers of technology related to client engagement, digital financing and investment, and the improvement of its general operations.
Although it has not operated a corporate venturing vehicle, UBS has invested in several fintech producers, mainly participating in growth and late-stage deals.
The firm’s portfolio includes online wealth manager Lufax, communication software provider Symphony, wealth management platform developer SigFig and asset management software provider iCapital Network.
Mike Dargan, global head of group technology for UBS, told Bloomberg: “UBS wants to further engage with and support fintech firms. The new venture investment portfolio is a next step to accelerate our innovation and digitisation efforts.”
