Augmentum Fintech, a Rothschild-backed fund investing in financial technology, today announced it will try to raise £100m in an initial public offering (IPO) on the London Stock Exchange's main market.
If the IPO proceeds successfully Augmentum will buy a seed portfolio it values at £33.3m, including investments in Zopa and Seedrs.
Augmentum claims to have an identified pipeline of assets "currently in excess of £100m", and says it will offer exposure to difficult-to-reach private companies.
Management will invest £2.7m in the IPO, while RIT Capital Partners, the investment trust chaired by Jacob Rothschild, will buy another £10m.
Shares priced at £1 each will be issued, with a maximum of £125m if it is oversubscribed.
The fund, which provides early-stage capital to promising fintech firms, although it does not provide riskier seed capital. Augmentum claims the market in early-stage investments is underserved compared to seed capital, which has boomed in recent years.
Fidante Capital will act as sole financial adviser, bookrunner and joint sponsor.
Neil England, Augmentum Fintech chairman, said its seed portfolio which "still has significant upside potential and an identified pipeline of investments".
He said: "The substantial demand for post-seed venture capital funding in the European fintech market is being underserved and the company will be well positioned to capitalise on the best opportunities available in the market and deliver attractive long-term returns for investors.”
Tim Levene, co-founder and principal of Augmentum Capital, the company which will advise on the fund's investments, said: “Europe offers a large addressable and attractive fintech investment opportunity where we are blessed with a deep pool of talent and the company is well positioned to capitalise on some of the most compelling opportunities available in the market."