AltHub, a New York City-based alternative data sales agency, announced today that it has entered a definitive agreement to an all-equity merger with UK-based sales enablement and performance modelling platform, Invisage Alpha Limited.
Details about the Merger
AltHub, a leading provider of consulting and sales services to alternative data providers, plans to integrate Invisage’s AI-based sales enablement and performance modelling platform to expand the depth and breadth of services offered to investment managers and data providers.
Upon the completion of the merger, the combined firm will have a new management team and board structure to support and deliver against a clear roadmap that leverages the synergies between AltHub’s deep relationships and alt data sales expertise, with Invisage’s proprietary technology and highly intuitive platform. AltHub and Invisage shareholders will each receive 50% of the combined entity.
The focus of the new firm will be to deliver tools and services that automate the process for discovering, conducting due diligence, and preparing datasets to integrate into an asset manager’s investment process. The firm plans to expand the number of datasets on its platform, focusing on niche areas including ESG, Macro and providing curated super signals for a broad range of investment strategies.
Scott Hall, founder of AltHub, will become CEO of the new entity. He commented about the merger, saying “AltHub was one of the early pioneers and is a trusted partner for leading investment managers and data providers. As we continue to see alternative data establish its position as an integral part of every investors’ decision-making process – like fundamental data and investment research – we see a need for the ecosystem to mature and deliver better tools and operational processes. Through our partnership with Invisage, we have been able to combine our personalized approach with scalable technology. It has become clear that this is a winning proposition. As a joint entity, we already see our revenue accelerating as we address currently unmet high value needs.”
Vishnu Thurpati, founder of Invisage Alpha, will become Chief Product Officer in the new management structure and will be responsible for evolving the Invisage platform to enhance the value delivered as the market continues to expand. Thurpati commented on the merger: “To date, the focus within the alt data ecosystem has been on creating match-making services and marketplaces – this does not address the core needs of data providers and investors to be able to quickly discover and integrate insights into the investment process. To do this requires a combination of human expertise and sophisticated technology. By combining our skills and resources, AltHub and Invisage are helping data providers expand the addressable market and deliver greater value and insights to investment managers.”
The merger of AltHub and Invisage Alpha is an interesting move as it leverages the skills of the two firms to help alternative data providers prove their predictive ability and market this value to buy-side, corporate, and other potential data consumers.
In addition, the new AltHub will also help asset managers discover and integrate alternative data into their research process. The combined entity will also create and market unique investment signals that leverage data from a wide range of vendors.
AltHub and Invisage Alpha have been working together informally for the past few months, and the value of the merger has already been proven internally as new client engagements have ramped up sharply for the services provided by both firms.
Clearly, the alternative data industry is maturing as not only the number of data providers is growing, but the number of firms providing “picks and shovels” enabling clients to better use the data are also on the upswing, including firms like AltHub, Neuravest, Crux Informatics, and a host of other AI tools.
The big question for AltHub is whether they can prove their value and grow the number of data partners they work with; incentivize these partners to create unique value-added signals; and launch must-have services to enable mid-sized asset managers to more easily integrate data into their research process. It will be extremely interesting to watch as AltHub gains traction with both data providers and consumers in the coming years.