Global sovereign wealth funds are taking up larger stakes in the booming financial technology industry. According to the SWFI transaction database, sovereign funds like Singapore’s Temasek Holdings have been tepidly shifting out of Western banks in favor for companies like Mastercard and smaller fintech plays like Eigen Technologies, which is a London-based artificial intelligence (AI) technology platform that reads legal and financial documents. While valuations are high, confidence in the long term potential of some tech companies is strong enough to overcome the cost burden. Sovereign wealth fund managers don’t seem to mind paying a premium for a company that is likely to prosper. Saudi Arabia’s Public Investment Fund (PIF) funneled big money to the ginormous SoftBank Vision Fund which aims to target at least US$ 200 million toward financial technologies. Ibrahim Ajami, Head of Venture Capital at Abu Dhabi’s Mubadala Investment Company, opened an office in San Francisco. Mubadala perceives venture investing as a collaborative endeavor.

Fintech Payments Ecosystem

Proximity to the Silicon Valley is seen as the best way to be a part of the conversation, and to make prudent financial decisions. Payments processor Worldpay is one such investment. Worldpay processes a variety of payments online. Over 300 payment types are accepted, and Worldpay notes that US$ 40 billion in transactions pass through their systems each year. This includes payments in 146 countries. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]