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

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

Alan Freudenstein & Gregory Grimaldi
Credit Suisse

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

1. James Robinson III
& James Robinson IV
RRE Ventures
2. Jane Gladstone
Evercore Partners
3. Matthew Harris
Bain Capital Ventures
4. Steven McLaughlin
Financial Technology Partners
5. Jonathan Korngold
General Atlantic
6. Richard Garman &
Brad Bernstein
FTV Capital
7. Amy Nauiokas & Sean Park
Anthemis Group
8. Thomas Jessop
Goldman Sachs Group
9. Meyer (Micky) Malka
Ribbit Capital
10. Hans Morris
Nyca Partners
11. Maria Gotsch
Partnership Fund for New York City
12. Marc Andreessen
Andreessen Horowitz
13. Barry Silbert
Digital Currency Group
14. Jay Reinemann
Banco Bilbao Vizcaya Argentaria
15. Mariano Belinky
Santander InnoVentures
16. François Robinet
AXA Strategic Ventures
17. Vanessa Colella
Citi Ventures
18. Alan Freudenstein & Gregory Grimaldi
Credit Suisse
19. Justin Brownhill & Neil DeSena
SenaHill Partners
20. Rodger Voorhies
Bill & Melinda Gates Foundation
21. Michael Schlein
Accion International
22. Kenneth Marlin
Marlin & Associates
23. Rumi Morales
CME Ventures
24. Mark Beeston
Illuminate Financial Management
25. Vladislav Solodkiy
26. Fabian Vandenreydt
Innotribe SWIFT
27. Derek White
28. Alex Batlin
29. Jeffrey Greenberg
& Vincenzo
La Ruffa
Aquiline Capital Partners
30. P. Howard Edelstein
REDI Holdings
31. Nektarios Liolios
Startupbootcamp FinTech
32. Roy Bahat
Bloomberg Beta
33. Andrew McCormack
Valar Ventures
34. Lawrence Wintermeyer
Innovate Finance
35. Janos Barberis
FinTech Hong Kong

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