Luge Capital’s fund attracts $71m with sights on global FinTech disruption


Luge Capital, an investment firm focused on the FinTech sector in North America, has secured CA$71m in the inaugural close of its Luge Capital Fund II.

The firm’s vision for this fund is to reach the pinnacle of a $100m total size.

The substantial capital accrued in the first close came from a mix of returning heavyweights such as CDPQ, Desjardins, BDC Capital, Sun Life, iA, Fonds de solidarité FTQ and the addition of a fresh participant, Inovia Discovery Fund I.

Continuing with the ethos of its maiden fund, Luge Capital Fund II aims to support nascent FinTech initiatives both in Canada and the U.S. These should be helmed by groundbreaking leaders with a global change-making vision.

This fund will also diversify its reach, delving into FinTech ventures that blend financial services with other significant sectors and emphasising ESG-oriented FinTech startups. It’s projected that the maiden investments from Fund II will surpass the initial allocations of Luge’s first fund in terms of value.

A glance into Luge’s competent and varied team reveals a conglomerate of FinTech mavens with an impressive array of skills – from founding startups to engineering and venture investments. With its inception in 2018, Luge has been unwavering in its commitment to partnering with the most prospective FinTech brands in North America, fostering symbiotic relations with major financial institutions, notably its LPs.

Luge Capital general partner David Nault remarked, “Our LPs are made up of large financial institutions, leading insurance carriers, and big pension funds who are both strategic and returns-based. We’ve developed a playbook for how we work with them and their additional commitments in Fund II are a testament to that model working.”

His colleague, Karim Gillani, also a general partner, added, “Financial services impact the lives of every person, from opening a bank account and making payments to buying insurance and making investments. Yet large institutions are finding it challenging to modernise their legacy technology.”

Historically, Luge’s inaugural fund, worth approximately $85m, was efficiently utilised in 21 companies. Amongst the notable names stand Flinks, which was acquired by the National Bank of Canada in 2021, Plooto, Owl, Flare, and OneVest. The launch of Luge Capital Fund II was unveiled at the Canada Fintech Forum 2023 in Montreal, where the Luge team is set to share invaluable insights on FinTech’s evolving landscape.

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