Alt21, a Dublin-based low-cost foreign exchange fintech, has appointed the former chairman of Global Shares to its board in a move that it seen as opening doors to strategic investment to accelerate its growth.
Andy Stewart led an investment in 2018 by New York private equity firm Motive Partners, in which he is an industry partner, into Cork-based Global Shares, which administers employee share plans for companies.
Motive Partners was the biggest winner when JP Morgan acquired Global Shares three years ago for $730 million (€632 million) to mark one of the most successful exits by an Irish fintech. Mr Stewart was Global Shares’s executive chairman at the time. Motive Partners had a 40 per cent stake.
Alt21, once known as Assure Hedge, was founded almost a decade ago by former financial derivatives trader Brian McCarthy. It is chaired by Richard Hayes, also an early investor in – and former chairman of – Global Shares.
Pritesh Ruparel, chief executive of Alt21, said that Mr Stewart’s “deep experience in designing capital structures for scalable global fintechs is invaluable” to the company.
“I look forward to working closely with Andy to help us secure the optimal capital structure and the scale of financing that matches our ambition,” he said.
Alt21 offers multi-currency solutions for small to medium-sized businesses (SMEs) at a fraction of rates charged by banks and brokers, which dominate the market. It started providing services in the UK in 2021 under authorisation from the Financial Conduct Authority (FCA).
It also recently secured authorisation in Malta, which will allow it to offer services across the EU, including Ireland.
[ Dublin fintech firm Alt21 raises further $12.5m in fundingOpens in new window ]
While fintechs Revolut and Wise have managed to prise a slice of foreign exchange business from banks in the micro-SME space over the past decade, Alt21 is aimed more at medium-sized firms, where its systems can be integrated into existing payroll and accounting systems. Half of the company’s 65 staff are understood to be engineers.
The company raised $12.5 million earlier this year in a so-called series A funding round, bringing total investment to date to $44 million.
“Alt21 is tackling one of the biggest inefficiencies still facing global mid-market businesses, the hidden costs and complexity of managing, moving, or earning interest on their money,” said Mr Stewart, who previously held senior roles at Blackrock, Credit Suisse and Man Investments.
“I’m excited to join the board and support the company in its ambition to scale into a truly global disruptive brand.”