Frankfurt-based RegTech and CapTech provider Lucht Probst Associates (LPA) is spinning off its consulting arm as an independent company. The new entity, Magpie Projects, will serve as a consulting platform focused on strategic challenges in the capital markets. The move was announced by both companies on Thursday evening.

The move is supported by private equity firm Motive Partners, which already has an investment in LPA.

Own Office in Zurich

With more than 75 consultants and offices in both Frankfurt and Zurich, Magpie Projects aims to provide targeted support to clients undergoing regulatory, technological, and strategic transformations. The spectrum ranges from regulation and digitalization to AI and data usage to the integration of public and private capital markets.

With the spin-off, Magpie Projects is positioning itself as an independent player in a growing market segment that aims to support traditional capital market players on their way to integrated financial market platforms.

Peter Schurau, CEO of Magpie Projects, describes the split as a stroke of luck: «We see enormous potential for sustainable growth, especially in Switzerland, and now have many more opportunities, particularly when it comes to partnerships,» he says.  

Banks Must Find New Answers

Magpie Projects' focus is on banks. These are facing enormous challenges: «We are seeing new market participants, for example, more and more private equity firms are entering the financial services market as players and developing alternative products. They are bypassing the banks and entering the retail market.» This is leading to a noticeable increase in demand for specialized consulting services: «Banks need to find answers to these trends.» Other challenges include AI applications and data usage, ESG, and embedded finance.

Magpie Projects does not want to be seen as a traditional consultant, but rather as a transformation specialist. «The market does not need another consulting firm. We want to offer banks very specific solution models that can be adapted to their needs,» says Schurau.