The integration of Altus and Paris-based Finance Active will enable clients to see assets, funds and debts in a single platform and simulate scenarios around loans and hedging to better manage the liabilities and risks of their investments.
As a global provider of commercial real estate software, data solutions and services, Altus already offers clients a range of services for all stages of an asset’s lifecycle. This acquisition will expand those capabilities into debt management.
The company said it was a strategic move as it expects debt management to be increasingly important in real estate over the next 18 months.
The Institute of International Finance recently reported that the pandemic added $24tn to global debt last year, with businesses accounting for $5.4tn of that rise. Although banking systems are in a stronger position than they were in the global financial crisis, Altus said that it expects banks to tighten lending criteria, thereby making debt an area of increased risk.
Mike Gordon, CEO of Altus Group, said: “The acquisition of Finance Active is a critical step to accelerate our growth in the debt asset class, a high-value adjacency that fits very well with our strategic roadmap and addresses client demand.
“Expanding our offerings into debt management will enable customers to have a 360-degree view of their investments, helping maximise value and better manage risk performance. We look forward to combining our talented teams and complementary solutions to better serve our clients.”
Founded in 2000, Finance Active provides SaaS debt and financial risk management solutions for treasury and investment management. Clients can digitise and automate time-consuming and complex tasks and have a real-time view of financial information through a range of monitoring, valuation, reporting and benchmarking tools.
With more than 3,000 customers across Europe, Finance Active and its 160-strong team will join the Altus Analytics business.
Patrice Chatard, co-founder and co-CEO of Finance Active, said: “As the founders of Finance Active, Jacques Descourtieux and I are incredibly proud of what our team has built and accomplished over the past two decades in establishing a market leading treasury and investment management solution.
“Joining Altus Group represents an exciting new chapter for Finance Active, positioning us for continued growth and innovation by enhancing the value we can provide for our esteemed clients and our team, and fuelling our expansion into new markets.”
The drive to consolidate proptech platforms
For Altus, this acquisition marks another step in its goal to consolidate tech solutions and offer interoperability. A survey it published last year showed that 89% of property executives said proptech needed “significant consolidation” to more effectively deliver on the needs of the industry.
The report also showed that respondents believed firms specialising in financing and lending were the third most likely to consolidate, after property and tenant management and property transactions and listing services.
Altus recently announced its integration with Yardi to allow clients to share data between the two platforms. That kind of integration – alongside the company’s approximately 50 acquisitions since 2005 – has been a response to the industry agglomerating “islands” of data, information located on various platforms that are incompatible with each other.