+++ LPA acquires multi-award-winning Swiss CapTech company
+++ CapTech suite from LPA is expanded with innovative products and solutions in artificial intelligence (AI) and machine learning which are in demand in the market both nationally and internationally
+++ This helps the LPA Group to add to its expertise in these future technologies, as well as increase its market share in asset and wealth management
Frankfurt am Main/Zurich, 16/01/2019 – The European market leader in capital market technologies, the LPA Group, is rapidly growing through the 100 percent acquisition of Swiss high-tech company AAAccell.
In AAAccell, one of the most remarkable success stories of the Swiss start-up scene is joining the ranks of the LPA Group. Founded as a spin-off of the University of Zurich in 2014, the technology business has rapidly become one of the leading CapTech companies in Switzerland. Evidence of this is provided by the many national and international awards including “Top 10 AI Google company”, “Top 5 European & Swiss FinTech”, “Global Top 100 RegTech”, “2019’s most innovative FinTech company in Switzerland”, and “Global Top 100 WealthTech”. In addition, AAAccell is a recognised member and finalist of the Swiss Economic Forum.
The products and services from the Swiss CapTech experts are a valuable addition to the LPA CapTech suite. The Quant solutions from AAAccell are based on sound practical know-how and many years of research. Thanks to the use of artificial intelligence (AI) and machine learning, they are groundbreaking innovations in risk and asset management.
AAAccell combines in-depth knowledge of the financial markets with various quantitative skills such as financial mathematics, modern statistical inference, machine learning and informatics. A team of long-standing financial experts, and PhD students and MA graduates from several leading universities provide the required scientific and technical know-how, using their expertise to create innovative solutions for the financial industry. The Zurich-based company also uses its global university networks.
Key areas in which the company operates are risk and asset management, currency hedging, alternative investments and fund management.
AAAccell’s main products are “REVOLA – Risk & Portfolio Management”, an AI-based portfolio optimisation solution for modern asset management, “AI-PRIIPS”, a technology for alternative, illiquid funds to calculate the risk and performance indicators for PRIIPS KIDs that are required from a regulatory point of view, as well as “Fundastic” – a B2B2C application that makes the world of funds and ETFs transparent by using artificial intelligence and machine learning. AAAccell developed a series of algorithms especially for that to identify powerful funds. To carry out appropriate calculations, the Swiss use the Morningstar database containing more than 350,000 fund shares. The main objective of the algorithms is to provide a decision-making tool for private banks and asset managers to increase their clients’ portfolio performance and to save them from investing in poorly managed funds. The AI system performs billions of simulations per evaluation in the cloud.
In the field of currency hedging, LPA and AAAccell have been working on a joint project for quite some time now – the HedgePilot. This product is an AI-controlled hedge decision-making tool that compares a specific customer situation with the market environment to minimise possible exchange rate risks. The algorithm used improves the decision-making process by continuously monitoring the market and supporting objective decisions – in contrast to the decisions made by finance managers that are often still intuitive. HedgePilot automatically recommends the exact amount and the exact due date to optimise the customer’s individual risk/return profile at any time. Customers monitor their portfolio, and receive a detailed analysis and at the same time hedge recommendations through the web application.
With the acquisition of AAAccell, the LPA Group is gaining a powerful and highly successful team and company. And the LPA Group is also experiencing further growth on the customer side. The customer portfolio of the Swiss enterprise is already positioned globally, including in Japan, where the LPA Group is not active yet.
CEO Sandro Schmid and CTO Boris Wälchli from AAAccell both remain on board and will support the LPA Group with all their energy and commitment in further developing digital innovations.
Roland Probst, co-founder of LPA: “Within a few years, AAAccell has developed into one of the most innovative European companies in the field of capital market technologies. This is underlined by its customer profile as well as the numerous prizes and awards the company and its CapTech solutions have received. Their focus on AI and machine learning makes the products and solutions from AAAccell a perfect fit for our CapTech suite. We are convinced that Sandro Schmid and Boris Wälchli as well as the whole team at AAAccell will add many an innovation. We are very much looking forward to working with our new Swiss colleagues.”
Sandro Schmid, co-founder and CEO at AAAccell: “The fact that we are now part of the LPA Group pleases us immensely. We have always been impressed by the pioneering role of LPA in the field of innovative capital market technologies – and to now be in a position to help develop the group further is an honour and obligation at the same time. Our vision, philosophy and values, but also our market segments, products and solutions are a perfect fit.”
About the LPA Group, formerly Lucht Probst Associates (LPA):
The LPA Group is an enterprise consisting of technology companies specialising in the demands and characteristics of the capital market sector, offering specially developed products and services (CapTech) for it. The core business of the multi-award-winning group is the continual development and expansion of its CapTech suite, a portfolio of leading technology solutions for automated consultancy, sales and documentation for financial instruments, structured products and OTC derivatives. The products and services from LPA help financial services companies in capital market activities to enhance their ability to innovate. Specifically, they support their customers in scaling their business activities (through automation for example), improving their business processes through sustainable optimisation and digitalisation, and reversing falling margins and returns – always in compliance with existing and future regulatory standards. In addition to the products and solutions in its CapTech suite, the LPA Group offers strategic consulting, management and implementation services. At headquarters in Frankfurt/M. as well as at ten international locations, including Tel Aviv, London, Zurich, New York, Paris, Copenhagen, Barcelona and Singapore, almost 400 technology and capital market experts are now working for a portfolio of international clients.
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