Capitolis extends platform into securities lending with $200 million eSecLending deal
Capitolis extends platform into securities lending with $200 million eSecLending deal #
Capital markets fintech Capitolis has agreed to acquire eSecLending, a Boston-based independent securities lending firm, for $200 million in an all-cash transaction. The deal, announced September 29, is the company’s fourth strategic acquisition in five years.
Capitolis is buying eSecLending from private equity firm Parthenon Capital and the firm’s existing management team. As part of the agreement, Parthenon Capital will simultaneously invest in Capitolis. Closing is subject to regulatory and antitrust approvals.
eSecLending was founded more than 26 years ago and serves pension funds, insurance companies, and asset managers, connecting them with major global bank borrowers. The firm provides customized lending strategies and collateral management services and has a network spanning institutional investors, banks, and global broker-dealers. The acquisition adds roughly 120 employees to Capitolis.
Capitolis builds financial resource optimization technology for capital markets participants. The combined platform is expected to cover securities lending, repo, and financing markets for both banks and institutional clients.
Gil Mandelzis, CEO and founder of Capitolis, described the deal as transformational. In comments to Israeli financial outlet Calcalist, he said discussions with eSecLending had been underway for about a year before the agreement was finalized, pointing to the firm’s complementary capabilities and institutional client relationships. Okan Pekin, President of Capitolis, said the two companies had already been co-developing solutions before the acquisition, giving Capitolis early visibility into eSecLending’s business and team.
Craig Starble, CEO of eSecLending, said the combination would let his team bring expanded solutions to clients, drawing on Capitolis’s global reach and connections across financial institutions.
Capitolis was founded in 2017 and has raised approximately $300 million from investors including Andreessen Horowitz, Sequoia Capital, Index Ventures, Canapi Ventures, and several large global banks. Previous acquisitions include the $46 million purchase of Capitalab.
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