Goldman Sachs (NYSE: GS) has guided an investment round of $38 million by large banks in a New York based company called Visible Alpha. This firm helps investment managers better value their equity research services received from brokers and will use cash to expand their global presence and ensure that offerings will keep up with client demand. Large banking firms include Wells Fargo & Co., Banco Santander SA, Royal Bank of Canada, and many others. The startup already has existing investors that include Morgan Stanley, Bank of America, and Citigroup.
Visible Alpha was launched last year to help fund managers keep track of amounts and value of equity research and corporate access received from brokers with the use of technology. The company also offers tools that help collect data from analysts to make it easier to use and more valuable for investors. Visible Alpha is part of the growing group of financial technology firms that are looking to take advantage of changes in Europe and asset management fees that are impacting changes in the equity research business model. The company works with around 450 research provides and has more than 100 buy side firms as clients which manage a combined $16 trillion in assets. The company hopes to expand globally into Asia, Europe, and Latin America.