Flagstone provides white-label and API-integrated capabilities for companies and businesses to be enabled to offer their users easy-to-use, adaptable, and secure savings options. The funding round combines primary and secondary investments. The primary funding sum is set to be leveraged in order to further consolidate
Flagstone’s development in the cash deposit market, while also building optimised brand awareness, matching competitive savings products, doubling down on deals, and providing improved customer service. In addition, the secondary investment will be used to reward the firm’s earliest backers, which will enable them to realise a significant return on their investments.
US-based financial services specialist private equity firm with deep expertise in the cash management market, Estancia Capital Partners is expected to take a minority stake in the Flagstone business throughout this deal.
Throughout this funding round, Flagstone is set to continue its strategy of providing individual savers, small and medium-sized enterprises (SMEs), and charities with the possibility to access multiple savings account offerings, which will be available from 60 of the United Kingdom’s cash-saving providers. This will take place from large incumbent banks and financial institutions to the challengers nationwide. The process will happen either directly or through the use of several fintech platforms, financial advisers, or brand collaborations and partnerships.
Following this investment, Flagstone’s total Assets under Administration (AUA) currently stands at more than GBP 11 billion. The company’s AUA increased by more than GBP 1 billion per quarter in 2023, as several personal and business-saver clients looked to maximise the overall interest earned on their cash. In addition, they had the opportunity to benefit from the overall security of FSCS protection.
Flagstone will also focus on the acceleration of its development process, as its growth strategy is underpinned by its management team’s significant investment in building strategic deals, as well as designing scalable and secure operation functions. Furthermore, this process will provide efficient cash solutions to the UK’s undisrupted savings market.
At a time when the overall funding capacity is down around the world, Estancia Capital Partners’ investment and overall market expertise will provide Flagstone with the possibility to capitalise on multiple opportunities across the industry. The company will prioritise meeting the needs, preferences, and demands of its customers in the ever-evolving market, while also remaining compliant with the regulatory requirements and laws of the local industry.
The transaction is expected to be closed in the second quarter of 2024, after receipt of the necessary regulatory approvals.
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