FNG Exclusive… FNG has learned via regulatory filings that Cologne, Germany based neobroker Nextmarkets is being liquidated.
Nextmarkets’ two largest outside shareholders, fintech investment firm FinLab (with a 34.36% holding in Nextmarkets AG) and crypto tech investor Samara Asset Group (with 37.68%) each issued regulatory filings in Germany indicating that the Management Board of Nextmarkets has decided, with the approval of the Supervisory Board, to sell all subsidiaries, respectively their assets as well as further assets of Nextmarkets.
The decision was taken “in the light of the challenging situation in the public capital markets and the weakness of the financing market”.
Technically, the liquidation of Nextmarkets AG will be proposed at the upcoming Annual General Meeting of the company. Nextmarkets might be sold “as is” and run by an acquiror, or its assets (i.e. clients and technology) could be sold which would then likely lead to the shut-down of the brand.
Nextmarkets overview
Nextmarkets was founded in 2014 by brothers Manuel and Dominic Heyden, with a goal to become one of the leading commission-free neobrokers in Europe. Manuel Heyden previously founded social trading focused broker Ayondo, and ran it as CEO until leaving in 2013. He is CEO of Nextmarkets. Dominic acted as CIO of Ayondo, and is CTO of Nextmarkets. In 2021 Nextmarkets raised $30 million in a Series B financing round. In addition to FinLab and Samara Asset Group, the company’s shareholders include noted investors Peter Thiel (via his Founders Fund), and Christian Angermayer.
FinLab and Samara Asset Group filings
FinLab noted in the filing that it has invested a total amount of approximately €8.8 million in the form of equity and debt into Nextmarkets since February 2015. FinLab assumes that its share of the liquidation proceeds of Nextmarkets will be less than its investment in the company, and that it could therefore incur a loss of up to approximately €8.8 million.
Similarly, Samara Asset Group said that it has invested a total amount of approximately €14.6 million as deposits and loans in Nextmarkets AG. In prior years, Samara has recognized impairments on Nextmarkets AG of €5.2 million. The unimpaired value is, therefore, implied to be €9.4 million, consisting of €5.7 million in equity and €3.7 million in convertible loans. The share of the liquidation proceeds of Nextmarkets attributable to Samara has not yet been determined, however Samara assumes that the amount of the acquisition costs of the shares in Nextmarkets AG and the amount of the loan granted will not be reached and that it could therefore incur a loss of up to the implied carrying value of €9.4 million.
