Exclusive: Aquiline raises $365M fund for fintech venture investments

Aquiline Capital Partners has closed on $365 million to invest in fintech startups through the second iteration of its venture fund, Aquiline Technology Growth (ATG) Fund II.

Why it matters: Despite a retrenchment in the public markets, VCs and LPs — particularly those in the financial services industry — remain bullish on the fintech space.

• The funding nearly doubles the capital the team has to deploy from the previous fund, ATG I, and comes in above the firm's $300 million target.

Details: Aquiline has private equity, credit financing, and venture teams, but ATG is focused specifically on investing in early-stage fintech, insurtech, and related enterprise software startups.

• The firm looks for startups with at least $1 million in ARR and makes equity investments between $3 million and $25 million.
• It takes minority positions and will lead or co-invest, depending on the opportunity, and has made 27 venture investments through two funds to date.

Between the lines: Given its relationships in the financial services and insurance industries, the firm is focused on identifying companies in the B2B space solving pain points for those markets.

• It also pitches its ability to connect startups with potential partners and customers as its key value prop when making investments.

The bottom line: Based on investor interest, there are still plenty of opportunities for innovation in the financial services sector.