Benoît Moulin, co-founder of Domos FS; Credit: Domos FS

Chronicle.lu recently had the opportunity to speak with Benoît Moulin, co-founder of Domos FS, a Luxembourg-based company specialising in Software-as-a-Service (SaaS) and end-to-end solutions for Alternative Investment Funds.

Founded in 2013, Domos has grown to more than 35 team members and boasts more than 40 clients. In March 2022, Domos received the certified project label for its DOMOS ESG Q® solution from Finance Innovation, a Paris-based global business and research cluster dedicated to financial services, underlining the continued efforts and success for Domos in creating new services in fundtech solutions.

Chronicle.lu: What is your company's business area / main focus ?

Benoît Moulin: Domos FS is a provider of SaaS solutions for the Alternative Investment Funds players: General Partners (GPs), Alternative Investment Fund Managers (AIFMs), Fund Administrators and Depositaries. Within this market, we focus on Private Assets: Private Equity, Debt, Infrastructure and Real-Estate.

Chronicle.lu: How did this opportunity present itself? Is it (partly) due to the changing regulatory landscape?

Benoît Moulin: Indeed, the triggering event was the Alternative Investment Fund Manager Directive (AIFMD) that came into force in 2014.

Arnaud Vinciguerra, former founder of Sophis, launched the Domos FS project in 2013 with the vision that this directive would push the newly regulated funds to greater transparency and a clear distinction between portfolio management and risk management. For him, the development potential was comparable to what happened with the UCITS Directive, that became a European label of trust for investment funds worldwide.

At that time, I worked for PwC Luxembourg advising management companies and depositaries on the impact of this directive on their operational model. I noticed a true technological gap. When I met Arnaud in 2013, it became obvious to me that Domos FS had the solution to bridge this gap. I built a business plan and joined the venture early 2014 to launch the prototype on the market.

Our initial target market was Luxembourg as it is usually quite in advance when it comes to translating regulatory updates into laws, and local players also tend to anticipate on upcoming regulations.

Chronicle.lu: What makes your company / product / service special or unique?

Benoît Moulin: I would highlight two points: Firstly, we were the first native SaaS multitenant solution hosted by a Professional of the Financial Sector in Luxembourg - and potentially still the only one. Secondly, we developed the Domos solution to comply with regulations while streamlining Alternative Investments Funds processes and operations. Even if our initial drive is regulation, our standpoint clearly is business as we aim to transform these regulatory constraints into opportunities. For example, when collecting and aggregating data for a legal reporting, we urge our customers to do it in a way that allows the data to be used for other added value purposes such as investor reporting.

Chronicle.lu: Please describe your company's business model (how do you generate income?).

Benoît Moulin: Our business model is based on licence fees. We also provide professional services such as technical support during implementation or specific developments.

Chronicle.lu: During this quiet holiday period, what are you focusing on?

Benoît Moulin: As Domos FS faces a very strong growth, I wouldn't call it quiet! We keep on developing new features, onboarding new customers, etc. Moreover, we need to support our clients during summertime as there are two regulatory deadlines to meet (end of June for the Common Reporting Standard /  Foreign Account Tax Compliance Act [CRS / FATCA] - end of July as well as mid-August for the AIFMD Annex IV reporting). I personally use this period to step back and appreciate past achievements, while anticipating upcoming opportunities. I also take days off to enjoy time with my family and to "recharge the batteries" as we say.

Chronicle.lu: Are you financing the startup yourselves, or have you attracted / are you trying to attract investors?

Benoît Moulin: In terms of financing, we are bootstrapped. We don't look for investors unless opportunities arise, such as the partnership we entered in with SimCorp last year.

Chronicle.lu: In what way(s) do you think Luxembourg is the right place to fulfil your business goals?

Benoît Moulin: Luxembourg players worked together to build an attractive environment for Alternative Investment Funds Managers (AIFMs) and it's successful! Luxembourg is the second place worldwide for Investment Funds. Moreover, Domos FS is positioned on a niche market that tremendously grew in the past decade : private assets. It is even opening to retail investors. The Brexit also created new opportunities, as we see more and more non-European AIFs managers set up their own AIFMs or use a third party in Luxembourg to access the European market. That's why I'm convinced Luxembourg is THE place to be for Alternative Investment Funds and consequently for us as their technology partner.

Note: Bootstrapped in finance describes a situation in which an entrepreneur starts a company with little capital, relying mostly on personal finances or the operating revenues of the new company.