UK Solidifies Leadership in European WealthTech, Securing 47% of 2025 Deals

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Despite a challenging year marked by significant contraction across the European WealthTech sector, the United Kingdom firmly established its dominance, capturing nearly half of all deals in 2025. This leadership comes as overall investment activity in financial technology for wealth management saw a sharp decline, underscoring the resilience and concentrated appeal of the UK market.

European WealthTech Market Experiences Sharp Contraction in 2025

The European WealthTech market faced considerable headwinds throughout 2025, continuing a downward trend initiated in 2024. Both deal activity and total funding experienced substantial drops, signalling persistent investor caution amidst global economic uncertainties.

  • Total WealthTech deals in Europe plummeted by 59% year-over-year, from 381 transactions in 2024 to just 158 in 2025. This represents a staggering 92% decline when compared to the sector’s peak of 2,064 deals recorded in 2021.
  • Overall funding also fell significantly, decreasing by 36% to $2.9 billion from $4.5 billion in 2024. This figure marks an 84% reduction from the $18 billion invested in 2021, highlighting a sustained period of reduced capital deployment in the ecosystem.

This prolonged downturn underscores the challenges confronting European WealthTech firms, with a noticeable cooling of investor appetite and a prolonged era of market instability dampening prospects.

UK Remains Europe’s Foremost WealthTech Hub, Capturing 47% of Deals

Amidst the widespread market contraction, the UK reinforced its position as the premier WealthTech hub in Europe. British companies accounted for 74 deals, representing a substantial 47% share of all European WealthTech activity in 2025. While this number reflects a 39% decrease from the 121 deals (32% share) seen in 2024, the UK’s increased market share points to a growing concentration of investment within established markets.

Following the UK, France secured the second spot with 19 deals (12% share), a 50% drop from 38 deals (10% share) in the previous year. Notably, The Netherlands emerged as the third most active market with 11 deals (7% share), surpassing Germany, which had previously held a strong position with 46 deals (12% share) in 2024.

The performance of the UK and France, increasing their relative share of a shrinking market, suggests a consolidation of WealthTech investment into a fewer, stronger core markets, even as overall activity continues to decline.

Coremont Secures $40M Investment, Highlights Demand for Advanced Portfolio Solutions

One of the most significant European WealthTech deals of the year saw London-headquartered Coremont, a leading provider of real-time, multi-asset class portfolio management software and analytics, raise a $40 million strategic growth investment. The funding round was led by funds managed by Blue Owl Capital, an investment firm overseeing $295 billion in assets.

This substantial investment highlights Coremont’s crucial role in providing essential infrastructure for buy-side firms. With market volatility intensifying, there’s a heightened demand for cloud-native alternatives to traditional legacy portfolio management systems, driving the need for real-time risk analytics, sophisticated derivatives modelling, and scalable data integration capabilities.

Coremont’s innovative platform offers live portfolio monitoring, robust stress testing, and in-depth scenario analysis across a broad spectrum of asset classes, including fixed income, equities, currencies, and commodities. Its blend of intuitive user interfaces with powerful API connectivity is designed to support increasingly complex investment strategies employed by modern financial institutions.

The newly acquired capital is earmarked for strategic expansion, including the development of product coverage into emerging asset classes and alternative strategies. Coremont also plans to embed AI-driven analytics and natural-language tools across investment teams, and further enhance its real-time risk management functionalities. This investment is set to fuel Coremont’s continued growth across Europe and globally, as wealth and asset managers prioritize the modernization of their technology infrastructure.

Source: fintech.global

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