Transaction adds a strong institutional investor with unique opportunities for future strategic partnerships between Purpose and Allianz
Capital will be used to further accelerate growth of Purpose’s core platform
Allianz X will join Purpose’s board of directors
TORONTO , Feb. 10, 2021 (GLOBE NEWSWIRE) — Purpose LP (“Purpose Financial“), a leading financial technology platform, today announced a minority investment from Allianz X, the digital investments unit of the Germany-based Allianz Group, which is focused on investments into leading fintech businesses globally. The transaction is subject to the approval of regulatory authorities.
The investment from Allianz X will be used to accelerate growth and expand product development across Purpose Financial and its key growth businesses. The transaction will be an initial step in a strategic cooperation between Purpose Financial and Allianz, a leading global insurance and asset management firm, to leverage one another’s deep expertise and develop further partnership opportunities.
“We are excited to welcome Allianz X as an investor and partner in our business alongside our existing investors OMERS and TorQuest,” said Som Seif, Chief Executive Officer of Purpose Financial. “Our business has grown exponentially since founding in 2013 and we are still in the early stages of our journey to innovate within the financial services industry. This partnership will provide us with additional resources and expertise to accelerate our growth and continue to drive innovation across the financial services sector on behalf of consumers.”
Purpose Financial has a core focus on innovating within three exciting areas of financial services:
Asset Management: Purpose Investments is modernizing asset management, focusing on outcome and liability driven investing to help customers meet long-term goals. Today, Purpose Investments manages over $10 billion in assets with a primary focus on risk management and customer outcomes rather than benchmarks and attractive fees.
Wealth Management: Purpose Advisor Solutions provides a wealth-as-a-service technology platform to support independent wealth advisors and portfolio managers, allowing them to manage their businesses independently. Since launching in 2018, the business has grown to nearly $2 billion in assets on its innovative platform, with a strong pipeline of new customers driven by a growing demand from wealth advisors looking to take ownership of their business and client experience.
Small Business Financial Platform: Thinking Capital is building the financial operating system for small businesses (“SMEs”), providing them with financial insights and access to credit to support their operating and growth needs. Since its founding, Thinking Capital has provided over $1 billion in loans to over 16,000 small businesses across Canada. Through its leading-edge technology platform, Thinking Capital partners with major banks, technology providers and other leading companies to help SMEs better manage their cash flows.
As a financial technology platform, Purpose Financial is driven to help Canadian individuals, advisors and small businesses achieve their financial goals. Through its businesses and their synergies, Purpose Financial is innovating to create new products and solutions in segments of the financial services market that have traditionally been underserved.
”Purpose Financial is a disruptor in the Canadian financial services landscape, having established a unique position in its market, particularly with its digital platform for financial advisors. The company is also well positioned for further growth in asset management and SME lending. We see various opportunities to capitalize on joint business opportunities going forward, for example in developing and distributing retirement solutions and investment products”, said Alexander De Kegel, Deal & Project Manager at Allianz X.
Allianz X invests in digital growth companies that are part of the ecosystem related to insurance, and its portfolio includes companies like the telemedicine provider AmWell, the B2B fintech C2FO and Germany-based challenger bank N26. A member of the Allianz X team will be joining the Purpose Financial board of directors.
“Given the current macroeconomic challenges and the growing importance of providing joint life insurance and asset management solutions, this partnership is a significant opportunity for Allianz and Purpose Financial to leverage each other’s expertise in financial services and digital technology”, said Cameron Jovanovic, Global Head of Retirement and Wealth Propositions of Allianz SE. “Retirement is a strategic growth pillar for Allianz, and we recognize the importance of creating holistic, digitally-enabled solutions for our customers. We see the partnership with Purpose Financial as a step forward in developing the innovative capabilities necessary to tackle the broad set of opportunities and challenges in the retirement sector, both in Canada and around the world”, he added.
About Purpose Financial Purpose Financial is an independent financial services company with an unrelenting focus on customer-centric innovation, delivered through technology-driven solutions. Led by entrepreneur Som Seif, the company is developing a diversified product platform aimed at addressing historically underserved segments of the market. Purpose Financial’s businesses include Purpose Investments, Purpose Advisor Solutions and Thinking Capital. For more information, please visit: https://purposefin.com/
About Allianz X
Allianz X is the digital investment unit of the Allianz Group. Allianz X invests in and partners with digital frontrunners in the ecosystems relevant to insurance. Allianz X is one of the pillars of Allianz’s digital transformation strategy, and provides an interface between Allianz entities and the wider digital ecosystem. For more information, please visit: https://www.allianzx.com/
Media Contacts For more information and media requests regarding Purpose Financial, please contact: Keera Hart, Kaiser & Partners Keera.hart@kaiserpartners.com
For more information and media requests regarding Allianz X, please contact:
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
