The 2015 Fintech Finance 35: Alan Freudenstein and Gregory Grimaldi, Credit Suisse NEXT Fund

No. 18 Alan Freudenstein & Gregory Grimaldi, Credit Suisse NEXT Fund

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< The 2015 Fintech Finance 35

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18
Alan Freudenstein & Gregory Grimaldi
Co-heads
Credit Suisse
NEXT Fund

From 2000 to 2013, Alan Freudenstein and Gregory Grimaldi quietly assembled a portfolio of private investments in financial technology companies within Credit Suisse Asset Management. Their holdings included data aggregator Capital IQ, which McGraw Hill Financial bought in 2004; Markit, a London-based information services company that went public in 2014; and trading venues Archipelago, BATS Global Markets and FX Alliance. In 2013 the New York–based duo transferred 20 of their investments into a new limited partnership, the Credit Suisse NEXT Fund. Investors include Credit Suisse family-office clients, sovereign wealth funds, funds of funds and secondary fund investors. (Pensions, endowments and foundations will have to wait for a future vehicle.) “It was never easy to make investments from bank balance sheets, but after Volcker it got much more difficult,” explains Freudenstein, 51, a University of Chicago MBA and former Booz Allen Hamilton consultant. NEXT, which closed with $405 million in assets in early 2014, draws knowledge and insight from Credit Suisse’s staff. “That’s the secret sauce,” says Grimaldi, 41, a University of Pennsylvania engineering and computer systems and finance graduate. Recent investments include online lender Prosper Marketplace and cognitive-computing pioneer Digital Reasoning, for which NEXT co-led a $24 million Series C round with Goldman Sachs Group in October 2014. The fund’s deals average between $10 million and $20 million, usually at later stages, although the team is open to all stages. Its primary investment consideration is the ability to influence a portfolio company’s outcome. “If it’s just money, then we’re probably not the best investor,” says Freudenstein, who describes the fintech climate as “very competitive — we focus on opportunities where we can add value, which helps us avoid highly competitive situations.”


The 2015 Fintech Finance 35

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1. James Robinson III
& James Robinson IV
RRE Ventures

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2. Jane Gladstone
Evercore Partners

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3. Matthew Harris
Bain Capital Ventures

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4. Steven McLaughlin
Financial Technology Partners

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5. Jonathan Korngold
General Atlantic

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6. Richard Garman &
Brad Bernstein
FTV Capital

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7. Amy Nauiokas & Sean Park
Anthemis Group

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8. Thomas Jessop
Goldman Sachs Group

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9. Meyer (Micky) Malka
Ribbit Capital

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10. Hans Morris
Nyca Partners

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11. Maria Gotsch
Partnership Fund for New York City

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12. Marc Andreessen
Andreessen Horowitz

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13. Barry Silbert
Digital Currency Group

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14. Jay Reinemann
Banco Bilbao Vizcaya Argentaria

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15. Mariano Belinky
Santander InnoVentures

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16. François Robinet
AXA Strategic Ventures

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17. Vanessa Colella
Citi Ventures

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18. Alan Freudenstein & Gregory Grimaldi
Credit Suisse
NEXT Fund

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19. Justin Brownhill & Neil DeSena
SenaHill Partners

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20. Rodger Voorhies
Bill & Melinda Gates Foundation

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21. Michael Schlein
Accion International

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22. Kenneth Marlin
Marlin & Associates

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23. Rumi Morales
CME Ventures

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24. Mark Beeston
Illuminate Financial Management

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25. Vladislav Solodkiy
Life.SREDA

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26. Fabian Vandenreydt
Innotribe SWIFT

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27. Derek White
Barclays

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28. Alex Batlin
UBS

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29. Jeffrey Greenberg
& Vincenzo
La Ruffa
Aquiline Capital Partners

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30. P. Howard Edelstein
REDI Holdings

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31. Nektarios Liolios
Startupbootcamp FinTech

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32. Roy Bahat
Bloomberg Beta

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33. Andrew McCormack
Valar Ventures

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34. Lawrence Wintermeyer
Innovate Finance

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35. Janos Barberis
FinTech Hong Kong


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