The private equity firm intends to spur EquiLend’s growth.
Private equity firm Welsh, Carson, Anderson & Stowe (WCAS) has acquired a majority stake in EquiLend, a technology, data, and analytics provider for the securities finance industry, officials say.
WCAS is “impressed with EquiLend’s highly differentiated suite of technology solutions and its sustained trusted client relationships,” says Ryan Harper, a general partner at the private equity firm, in a prepared statement.
“We believe the company is uniquely positioned to help drive further electronification, efficiency, and innovation in its market. We look forward to partnering with the EquiLend team in this next chapter of exciting growth,” Harper adds.
The acquisition is scheduled to close during the second quarter of 2024, subject to regulatory approvals.
“In addition to the acquisition, WCAS has committed a further $200 million investment to support organic growth initiatives and acquisitions by EquiLend,” according to the announcement.
“EquiLend has experienced remarkable growth over our more than two decades of supporting the technological needs of the securities finance market,” says Brian Lamb, CEO of EquiLend, in a prepared statement.
“WCAS shares our client-centric vision and is a natural partner to support our mission of providing outstanding customer service and providing innovative technology solutions to the marketplace,” Lamb says.
A consortium of global banks and broker-dealers founded EquiLend in 2001 “to develop technology to create efficiencies for the securities finance market. Since its founding, the company’s client base has grown to nearly 200 asset owners, agency lending banks, broker-dealers and hedge funds,” officials say.
The EquiLend suite of financial technology solutions supports securities finance market participants’ business, including electronic trading, order management, post-trade automation, data and analytics, and regulatory technology solutions, officials add.
EquiLend also operates NGT, the regulated securities lending trading platform “through which more than $2.4 trillion of transactions are executed each month by market participants around the globe,” officials say.
EquiLend was advised by Broadhaven and Paul Hastings, and WCAS was advised by Citi and Kirkland & Ellis.
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