HSBC is to make an investment in Visible Alpha, an investment research technology firm founded by some of the world’s leading investment banks.
Visible Alpha raised USD38 million in January with participation from new investors Goldman Sachs, Banco Santander, Exane BNP Paribas, Macquarie Group, Royal Bank of Canada and Wells Fargo, as well as additional investment from the company’s founding investors, Bank of America, Citi, Jefferies, Morgan Stanley and UBS.
Visible Alpha is using the investment proceeds to continue to drive its explosive growth and leadership position in delivering transparent, efficient and alpha generating investment research solutions to its clients and helping them meet the research valuation and budgeting requirements of MiFID II. More than 450 research providers are now actively participating on the platform, along with over 100 buy-side firms with a combined AUM of USD16 trillion. In addition to investing in Visible Alpha, HSBC will be adding its research analyst models to the Visible Alpha Insights platform and contributing to Visible Alpha Consensus Data.
With the formation of an Advisory Board, Visible Alpha will seek guidance from the global financial institutions that have invested in the company to ensure product development is focused on the specific needs and regulatory requirements of its clients. David May, Global Head of Research at HSBC and Advisory Board member, says: “Visible Alpha has rapidly become a leader in helping both the buy side and the sell side overcome the myriad of challenges involved in creating and disseminating investment research. We look forward to working with them to provide a valuable service to our clients.”
“We are pleased that HSBC embraces our vision for the future of institutional research and appreciates the ability of our platform to enhance the gathering of insights from their analysts’ underlying company forecasts and assumptions,” says Scott Rosen (pictured), CEO of Visible Alpha. “We are committed to improving the value of communication between all market participants and helping investors find unique insights into the future performance of companies.”
