Allocation Strategy, the company building the analytics foundation for better asset allocation decisions and investment outcomes, has secured £1.6 million in its latest funding round led by Fuel Ventures, with participation from angel investors and industry experts.
Improving Asset Allocation Decision Making
The raise marks an important step in Allocation Strategy’s mission to equip institutional investors with a more modern and robust set of analytics for asset allocation decision-making – enabling investment teams to tackle complex portfolio questions with forward-looking tools, clearer scenarios, and more intuitive macro insights.
Allocation Strategy was founded by Pavol Povala, Drew Barnden and Michael Chin, former leaders from NBIM – the world’s largest sovereign wealth fund – with decades of experience building and operating asset allocation analytics at scale. Having seen the industry’s biggest challenges first-hand, they combined decades of research, proven real-world deployment, and production-grade technology to create Allocation Strategy: a modern, comprehensive platform built to solve these pain points.
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Learning From 2021
When inflation surged in 2021, many institutional allocation tools were exposed as outdated and unprepared for a rapidly shifting macro environment. Existing solutions failed to connect portfolio decisions to the macro forces driving markets – leaving investors working with incomplete, inconsistent or unreliable inputs. Additionally, asset allocation requires complex yet broad toolkits covering multiple angles, which historically haven’t been available from one provider, and building in-house is costly and time-consuming.
Allocation decisions are getting harder to make as the world rapidly changes. The line between traditional and new assets has blurred, as private, alternatives, and crypto markets grow. Geopolitical and macro regimes are also shifting, and old models and assumptions no longer hold. Finally, rapid technological change, driven by AI-advances, presents multi-faceted challenges to investors.
Allocation Strategy was built to solve this gap, delivering more powerful, comprehensive, and trustworthy analytics to help investors build more resilient portfolios. With the right tools, the large volume of challenges facing investors can instead be viewed as unprecedented opportunities.
The platform provides state-of-the-art asset allocation technology, built on decades of research and expertise. Its tools support investors across critical allocation workflows – from capital market assumptions and portfolio optimisation, to macro risk factors, scenario builders, and model portfolios – helping institutions better understand risk and return trade-offs and strengthen decision-making across portfolios.
The new capital will be used to build and scale the business, further expand Allocation Strategy’s R&D activity, and accelerate the rollout of new solutions for institutional investors.
Pavol Povala, CEO of Allocation Strategy, said:
“Portfolio decisions are more complex than ever, and institutional investors need stronger tools to understand risk and build resilience over time. Allocation Strategy is designed to give investment teams a clearer analytical foundation for asset allocation decisions – supporting everything from expected return inputs to scenario analysis and portfolio construction.
“This funding enables us to accelerate R&D underpinning our analytics, scale the business, and expand our solutions to support more institutions globally.”
Mark Pearson, Founder of Fuel Ventures, commented:
“Allocation Strategy is tackling one of the biggest challenges in investing today: making confident allocation decisions when portfolio construction is becoming more complex and macro conditions are shifting faster than many traditional tools can handle. The team brings exceptional domain expertise from operating at scale inside one of the world’s most sophisticated investment organisations, and they’ve translated that experience into a platform that’s genuinely useful for investment teams.
“We’re excited to support Allocation Strategy as they build out the product, launch new solutions and scale to meet growing demand from institutional investors globally.”
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