Alan Howard-Backed Elwood Technologies in Talks to Sell Part of the Business: Sources

As a crypto investor with some experience in the industry, I’ve been closely following the developments at Elwood Technologies. The news of their potential sale and reorganization has piqued my interest, given the involvement of billionaire hedge fund manager Alan Howard.

Four sources familiar with the matter have revealed that Elwood Technologies, a prominent player in the cryptocurrency sector offering trade execution and risk management services, is currently engaged in negotiations to transfer a portion of its business. The company, which counts billionaire hedge fund manager Alan Howard among its backers, is reportedly considering this move.

According to a source, Elwood has revised its strategic direction and now prioritizes its provision of portfolio management and risk management software-as-a-service over its trading activities.

London-based Elwood has a team of approximately 100 employees working out of offices in the UK, US, Jersey, and Singapore. Elwood specializes in trade execution and portfolio management software. More recently, in May of last year, they expanded their offerings to include risk management services, specifically exposure tracking and collateral monitoring.

In the year 2023, the corporation generated a total revenue of $11.5 million. However, following the payment of $23.3 million to their business partners, they reported a loss of $16.9 million as per their financial statement.

As a researcher delving into recent developments within the crypto sphere, I’ve come across information indicating that Howard has undergone some adjustments in his crypto investment portfolio which have led to shifts at Elwood. According to media reports, including Bloomberg, Howard was intending to offload his holdings in Bitpanda and Copper earlier this year to put more emphasis on Brevan Howard Digital.

Elwood declined to comment. Alan Howard did not respond to a request for comment.

In the opening months of 2022, I discovered that Elwood secured an impressive Series A funding round, totalling $70 million. Goldman Sachs and Dawn Capital spearheaded this investment, while other notable contributors included Barclays, Commerzbank’s CommerzVentures, and Galaxy Digital Ventures.