Novo Holdings

The business case 

With more than 149 billion euros in assets under management, Novo Holdings has experienced rapid growth in recent years. 

As the holding and investment company of the Novo Nordisk Foundation, the primary owner of Novo Nordisk and one of the world’s largest philanthropic enterprise foundations, Novo Holdings' purpose is to improve people’s health and the sustainability of society and the planet by generating long-term returns of the assets of the Foundation. 

In addition to being the controlling shareholder of Novo Nordisk A/S, Novo Holdings manages a broad investment portfolio of equities, bonds, real estate, infrastructure, and private equity assets, as well as being a world-leading life sciences investor. 

A crucial tool in managing this portfolio is SimCorp's front-to-back investment management solution. 

The solution 

Since 2017, Novo Holdings has been using the SimCorp platform as the backbone of its front-to-back investment operations. At the beginning of 2023, they decided to transition to SimCorp’s SaaS solution. The implementation was swift and efficient, beginning in January and going live by mid-July, demonstrating the strong collaborative relationship between Novo Holdings and SimCorp.

The transition to SaaS has enabled Novo Holdings to streamline operations, reduce complexity, and set the stage for future growth and innovation. 

“It has been a very smooth and structured process, but still pragmatic, where SimCorp has been able to focus on our specific situation and needs. We are very pleased with the process, and it’s clear from the framework SimCorp has developed that it was a very good approach to it,” says Frederik Jensen Hummeluhr, System administrator at Novo Holdings. 

The move to SaaS was part of Novo Holdings' overarching IT strategy. At the same time, the ambition was to elevate the SimCorp solution to the next level. 

To professionalize and mature their investment organization, Novo Holdings required a robust system scalable and adaptable to their growing needs. As their infrastructure needs evolved, they sought a more integrated platform.

The results 

The SaaS solution has provided several benefits, including reduced operational complexity with a single-provider model that simplifies operations, eliminating the need for multiple partners and streamlining communication. It has also led to enhanced operational efficiency and greater cost transparency. 

“One key benefit is that we greatly improved the quality of our platform without increasing our internal workload. We have a simpler, more efficient setup,” says Frederik Jensen Hummeluhr. 

SimCorp SaaS also delivers a foundation for future innovation, with the ability to quickly leverage new fintech options that are available through the SimCorp partner ecosystem, as well as compliance readiness and further professionalization of investment operations.