Toscafund leads USD25m growth equity investment in VoxSmart

Toscafund, the multi asset fund management group, has become the leading shareholder in VoxSmart, the communications surveillance software provider, by investing USD25 million of growth capital to enable the business to continue its rapid growth trajectory. 

This is the seventh investment that Toscafund has made in high-growth European financial services businesses since 2018 and brings the total the firm has invested in the sector to more than USD700 million. Recent investments include Plurimi Wealth and Socium in the UK, LIQID and Elinvar in Germany, Caravela in Portugal, and Lemonway in France. Toscafund is a specialist investor in this space, where it believes there are now significant opportunities. Earlier successful investments have included OakNorth, Aldermore Bank, Atom Bank and Esure. 

VoxSmart a global leader in communications surveillance, providing end-to-end services to its clients via a unified solution designed specifically for capital markets. The company’s software enables its clients to capture and store their employees’ activities on their mobile devices, analyse and monitor employee communications across all media, as well as automate trade reconstructions. The company has more than 100 clients across the banking and asset management sectors, including HSBC, Bank of America and TP ICAP and is witnessing a surge in demand for its services as all banks and financial services firms adapt their systems to a remote working environment. 

Oliver Blower, CEO of VoxSmart, says: “We are delighted to announce this successful capital raise and to welcome Toscafund as a major shareholder. This additional capital will enable us to respond to the surge in demand we have seen for our services since the onset of COVID-19 and the dramatic increase in working from home within the banking and financial sector. Our services enable banks and financial firms to meet the most rigorous compliance standards even when working remotely and we believe should form a core part of any institution’s regulatory framework in the future.” 

George Koulouris, Partner at Toscafund, adds: “With this investment, Toscafund has assembled an extremely attractive portfolio of fast-growing businesses that are all contributing their technological skills to the digitisation and evolution that is currently taking place in the financial services sector. The opportunities to invest in this fundamental industry shift are hugely attractive for those with sufficient experience to recognise the genuine leaders in the space. We look forward to working with Oliver and his team.” 

Patrick Carey, Principal at Toscafund, says: “We are very pleased to invest in VoxSmart at this exciting stage in its development. In our view VoxSmart has developed an exceptional platform that provides mission-critical software for financial institutions, responding to an increasingly complex regulatory requirement to monitor employee communications and a practical need to protect against conduct risk.”