Edison Partners has made its third fintech exit of 2020.
On Tuesday, the growth-equity investment firm out of Princeton said it completed the sale of its stake in Solovis to Nasdaq for an internal return rate of 50 percent on its $13 million total investment.
The exit of the Dallas-based institutional investment management platform also marks Edison Partners’ first in the state of Texas. Financial terms of the sale were not disclosed.
“Solovis has disrupted the status quo in institutional investing and is an ideal fit for a global powerhouse like Nasdaq looking to elevate its technology and analytics capabilities in the investment technology markets,” Edison Partners General Partner Tom VanderSchaaff, who led the initial and subsequent investments, said in a prepared statement. “Our capital and value-add to the Solovis team on their growth journey has proven out tremendously well over a short period of time. We’re extremely proud of co-founders Josh Smith and Caleb Doise and the rest of the management team for being great partners in delivering this outcome.”
According to Edison Partners, Solovis was the first earlier stage investment completed by the firm – a strategy in which Edison invests $2 million to $4 million in fast-growing companies, with less than $5 million in revenue, but that shared trait of later-stage companies.
With Edison leading future financing rounds, these earlier stage investments, the firm said, are able to quickly “graduate” to core investment, as was the case with Solovis. Edison led each subsequent financing round for the company through exit as it achieved “phenomenal” revenue growth over a four-year period.
The multi-asset class portfolio, analytics and reporting system for asset owners and allocators will be available through Nasdaq’s eVestment group, Edison Partners said, expanding capabilities for that segment’s institutional investors.
“The added financial support and operating expertise that Edison Partners provided was instrumental in helping us accelerate Solovis’ growth and bringing us to this milestone,” Solovis co-founder and Chief Executive Officer Josh Smith, who will continue to serve as CEO, said in a prepared statement. “ We greatly appreciate their confidence in our vision, which resulted in a top-tier exit in just over three years.”
Edison Partners’ other 2020 fintech exits – all three came pre-peak outbreak of the current COVID-19 pandemic – were announced on March 11 when Jersey City-based Scivantage was acquired by Refinitiv, and in January when Clearpool was acquired by BMO Financial group.
Overall, Edison Partners has financed more than 235 private companies – including nearly 50 fintechs.