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The 2016 Fintech Finance 35: Richard Garman and Brad Bernstein

< Fintech's Most Powerful Dealmakers of 2016
7. Richard
Garman &
Brad BernsteinManaging PartnersFTV CapitalLast year: 6

Founded in 1998, Financial Technology Ventures made its first investment the following year, in pioneering online investment adviser Financial Engines, which went public in 2010 and today has a market valuation of $1.7 billion. In June of this year, the San Francisco–based firm now known as FTV Capital invested in its 92nd portfolio company, leading a $30 million growth equity commitment for information-security services provider ReliaQuest. Up to that point FTV had raised a total of $1.8 billion in four funds, and on September 26 it announced the close of the oversubscribed, $850 million FTV V fund. All along the firm has followed “an institutionalized model that enables us to deliver consistent returns for our limited partners,” says managing partner Richard Garman. Its longevity and consistency make FTV a trailblazer, not just as a financial-technology-specific investor, predating by a decade the boom now defined as fintech, but also as a connector of incumbent institutions with emerging technologies. Those connections are organized through FTV’s Global Partner Network, which includes its limited-partner roster of major banks, asset managers, and insurers, and has facilitated more than 400 contracts for portfolio companies. “We have always been advocates of evolution rather than revolution” and “enterprise-facing rather than consumer-facing” ideas, says Garman. The 59-year-old was CEO of three technology companies, including banking industry joint venture Electronic Payment Services, before joining FTV soon after its founding by James Hale and Robert Huret, who came out of Montgomery Securities. “Incremental improvement” is valued over fads and hype, Garman adds, and the entire strategy is predicated on “existing players applying these great new technologies in their footprint.” That’s not to say FTV isn’t up on the very latest. “We speak to 3,000 companies a year to find at least 100 to take a hard look at, and then we invest in four or five,” explains Brad Bernstein, 49, who has headed FTV’s New York office since 2003 and was promoted to managing partner in May. The firm’s deal-size range of $20 million to $85 million is geared toward companies with profitable business models producing $10 million to $100 million in revenue and growing at least 20 percent a year, but by casting a wide net, 32-person FTV keeps an eye on up-and-comers that may eventually benefit from its capital and collaboration. Also new to the portfolio this year: foreign exchange technology company Edgewater Markets and U.K. wealth management platform True Potential; Bernstein sits on both boards.


 The 2016 Fintech Finance 35 Click below to view profiles
1. Jonathan KorngoldGeneral Atlantic2. Matthew HarrisBain Capital Ventures3. Jane GladstoneEvercore Partners4. James Robinson III & James
Robinson IV
RRE Ventures5. Steven McLaughlinFinancial Technology Partners6. Amy Nauiokas & Sean ParkAnthemis Group
7. Richard Garman &
Brad Bernstein
FTV Capital8. Gerard
von Dohlen
Broadhaven Capital Partners9. Darren CohenGoldman Sachs Group10. Hans MorrisNyca Partners11. Meyer (Micky) MalkaRibbit Capital12. Maria GotschPartnership Fund for New York City
13. Barry SilbertDigital Currency Group14. Jay ReinemannPropel Venture Partners15. Mariano BelinkySantander InnoVentures16. Justin Brownhill & Neil DeSenaSenaHill Partners17. François RobinetAXA Strategic Ventures18. Vanessa ColellaCiti Ventures
19. Michael SchleinAccion International20. Kenneth MarlinMarlin & Associates21. Rumi MoralesCME Ventures22. Alastair (Alex) RampellAndreessen Horowitz23. Steve GibsonEuclid Opportunities24. Fabian VandenreydtSWIFT
25. Vladislav SolodkiyLife.SREDA26. Gardiner Garrard IIITTV Capital27. Nektarios LioliosStartupbootcamp Fintech28. Lawrence WintermeyerInnovate Finance29. Bina KalolaBank of America Merrill Lynch30. Hyder JaffreyFintech Innovation
31. Calvin ChoiAMTD Group32. Janos BarberisFinTech
Hong Kong33. Jalak JobanputraFuture Perfect Ventures34. Sopnendu MohantyMonetary Authority of Singapore35. Oskar Mielczarek
de la Miel
Rakuten
FinTech Fund