23 Apr 2018

Releasing the hidden value of Software Intellectual Property

Find out how we worked with an advisor to provide an innovative funding solution for Third Financial Software Limited, enabling them to continue to invest in their award-winning products.

Third Financial Software

The customer:

Third Financial Software Limited (TFS) provide a market-leading investment management software and FCA Regulated Platform services. 

Founded in 2007, the company’s vision was to build a new wealth management system to meet the needs of the UK’s smaller wealth managers. 

The increasing regulation and compliance requirements of the wealth management industry led TFS to establish Third Platform Services Ltd. This service provides administration, dealing, settlement and custody services as well as access to all the existing features of the company’s hosted award-winning Tercero software, coupled with the ability to have investment operations outsourced to a team of experienced market professionals.

The challenge:

Recent years saw rapid growth for TFS as the Tercero technology was widely adopted and extended to cover the back-office functionality of Wealth Managers.

Looking ahead, the team had a number of development focus areas, including building out online advice and transactional capability for Tercero Digital, and continued R&D for Tercero Wealth to meet 2018 Regulatory changes, while simultaneously investing in marketing to increase their client base.

The solution:

TFS employed technology debt finance specialist, Fuse Three Finance, to evaluate how to unlock the value in their intellectual property. As part of this process, they carried out extensive market evaluation, sourcing an appropriate fund and introducing TFS to Close Brothers Technology Services, who in turn proposed a solution that met TFS’s needs as an innovative fintech company.

Equally innovative was Close Brothers’ funding, which was secured against TFS’s Software Intellectual Property Rights (IPR), a non-traditional source of security.

The results:

TFS’s key driver was to limit funding raised from investment sources and Close Brothers’ IPR solution provided the ability to raise a significant amount of intangible asset-backed finance.

Fuse Three Limited matched Close Brothers by providing a solution that gave TFS the ability to obtain funding through their software IP rights along with the capacity to further develop their cutting edge product offering and ensure stringent regulatory challenges could be met today and into the future.

“We felt that Close Brothers Technology Services software intellectual property product was a great match for our innovative Wealth Management solution”

Stewart Foster, Group Chief Executive at Third Financial Software

“In our opinion Close Brothers Technology Services are comfortably ahead of the market in general and we have found working with them a true partnership, with joined up problem solving and teamwork. Close Brothers have an old school heritage, with visionary thinking in relation to Intellectual Property (software) lending.”

Russell Lerman, Director at Fuse Three Finance Ltd

This project included: Technology Funding

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