Firenze raises GBP £6 million to expand Lombard lending

Firenze has raised GBP £6 million in an oversubscribed funding round led by Albion VC, with existing investors Outward VC and Form Ventures also participating.

The deal follows a GBP £2.5 million seed round completed 12 months earlier.

The London-based fintech focuses on Lombard lending, a form of borrowing secured against investment portfolios. It provides software and lending infrastructure to wealth managers, independent financial advisers, investment platforms, and banks, enabling them to offer credit to clients without requiring them to sell or transfer their assets.

Firms using its platform now represent almost GBP £200 billion in assets under management. They include Brooks Macdonald, Canaccord Wealth, Artorius, Lincoln, Cerno, Parmenion, P1 and Soderberg.

Demand for this type of borrowing has risen sharply, with the total volume of drawn facilities tripling in the first quarter. Clients are using the loans for purposes including property-related borrowing, education costs, tax planning and inter-generational wealth transfers.

Expansion plans

The new capital will be used to broaden the range of products offered through the platform, expand its software offering for banks and support entry into new markets. Firenze also plans to double its team size as borrower demand rises and more wealth managers add Lombard lending to their client services.

Firenze argues that this part of the credit market has long been dominated by private banks, limiting access for a wider pool of investors. It is targeting wealth managers and platforms that want to provide secured lending without building the underlying credit infrastructure themselves.

Some private banks are also showing interest in using their technology to manage their own Lombard lending activity, including loans against assets not held in custody by the lending institution.

David Newman, Chief Executive of Firenze, outlined the rationale for the fundraising and the choice of investor.

"The market demand for Firenze's solution has exceeded our expectations and, as a result, our vision has become more ambitious. We therefore felt now was the right time to raise further capital to accelerate our plans. When seeking a partner for this next phase of growth, Jay and Albion stood out. I believe passion and trust are the two most important attributes when choosing a VC to work with, and Jay and Albion have demonstrated that time and again as we got to know one another. We also feel honoured by the continued support of our existing investors, who have shown growing enthusiasm for the momentum behind Firenze," said Newman.

Investor view

Albion VC backed the company because it sees scope for broader adoption of collateral-backed borrowing in wealth management.

"Firenze has built the foundational infrastructure layer to power the next generation of collateralised credit products, starting with Lombard lending. We're proud to support the team as they scale. Lombard lending has been one of private banking's most powerful tools, yet the vast majority of investors have had no access to it. Firenze is democratising that access, bringing Lombard lending to the mass-affluent segment. David and the team have executed exceptionally, signing partners covering over £200bn in assets and delivering a platform that solves custody, capital and compliance challenges simultaneously. That combination of market timing and product depth gave us the conviction to lead this round," said Jay Wilson, Partner at Albion VC.

Outward VC, which led the earlier seed round, said Firenze had expanded its commercial footprint quickly over the past year.

"When we led Firenze's seed round, we backed David's vision to bring Lombard lending beyond the walls of large private banks. Twelve months on, the progress has exceeded our expectations, including a five-fold increase in its partner network, a rapidly growing loan book and a SaaS proposition that's attracting leading banks and financial institutions, as has the vision for its future. Firenze is now proving that the credit infrastructure it has built can reshape how the entire wealth industry thinks about liquidity. We're proud to continue our support as the company enters this exciting next phase of growth," said Andi Kazeroonian, Principal, Outward VC.

The fundraising comes as wealth managers seek new sources of credit for clients who want access to cash without liquidating investment holdings in uncertain markets. Borrowers can often access funds within 24 hours.

Firenze's recent growth suggests lenders and wealth firms are testing whether secured portfolio lending can move beyond its traditional private banking base into the broader advised wealth market.