International law firm CMS has advised Flagstone, developer of the UK’s largest cash deposit marketplace, on its $15m venture capital investment led by Canadian investor OMERS Ventures and supported by existing investors including Kindred Capital and Moneysupermarket Group plc.
The investment will support Flagstone’s plans to extend further into new customer segments in the UK market.
Founded in 2013, London-based Flagstone has grown rapidly to become the leader in the UK cash deposit platform market having transmitted more than £5bn in deposits since 2015. Its platform provides customers with access to hundreds of cash deposit accounts from 44 banks including high street names such as HSBC and Nationwide as well as a host of challenger banks. This cash deposit marketplace enables Flagstone’s clients to increase their interest income and manage their risk through diversification and greater use of the Financial Services Compensation Scheme (FSCS) protection.
Tom Jameson, Corporate partner at CMS, comments:
“We are very proud to have worked with Flagstone on this important milestone investment led by OMERS, a deal which demonstrates not just the attractiveness and continued growth of Flagstone, but also the Fintech sector more broadly. It was great for CMS to be involved in this high-profile deal in the market which confirms our capabilities and leading position in advising quality UK fintechs, investment management businesses and investors in this market.”
Simon Merchant, co-managing partner and co-founder of Flagstone, says:
“We are grateful to CMS who were instrumental in helping us secure this investment. They have acted on our behalf in a most professional, intelligent and collaborative manner all the way through and brought their in-depth knowledge of the fintech sector to the table, which enabled the smooth completion of the deal.”
The CMS team was led by Tom Jameson and Dipesh Santilale and supported by Zoe Loftus-Bell (Corporate).