Capitolis has agreed to acquire eSecLending for $200 million in an all-cash transaction, expanding its financial resource management platform into securities lending and adding relationships with some of the world’s largest institutional asset owners.
The acquisition will be Capitolis’ fourth strategic acquisition in five years and will complement the company’s organic expansion across capital markets infrastructure.
eSecLending is an independent securities lending business serving pension funds, insurance companies and asset managers.
The company helps institutional asset owners lend securities to major global banks and has developed relationships across the global prime brokerage and banking ecosystem during its 26-year history.
Capitolis plans to combine eSecLending’s securities lending capabilities with its existing financial resource optimization products.
The combined platform will support securities lending, repo and financing markets while connecting banks and institutional investors through a broader set of capital and balance-sheet management tools.
The acquisition also gives Capitolis direct relationships with eSecLending’s institutional asset-owner clients.
Capitolis is acquiring eSecLending from Parthenon Capital and the company’s management team.
As part of the transaction, Parthenon Capital will make an investment in Capitolis.
eSecLending (Europe) Limited is not included in the acquisition but will continue providing services to eSecLending.
The transaction remains subject to customary closing conditions, including regulatory approvals and antitrust clearance.
FT Partners is serving as exclusive strategic and financial adviser to Capitolis, while WilmerHale is serving as legal adviser.
Berenson & Company and Raymond James are serving as financial advisers to eSecLending. Troutman Pepper Locke and Debevoise & Plimpton are providing legal advice.
KEY QUOTES:
“We’ve known the eSecLending team for years and have already been partnering to introduce new solutions to the market. We’ve seen firsthand the strength of their client relationships, the quality of their business, and the deep expertise of their team. Bringing eSecLending and Capitolis together expands our network and enhances our offering with securities lending capabilities that naturally complement our existing set of solutions.”
Okan Pekin, President of Capitolis
“We are incredibly proud of what we’ve built at eSecLending and grateful to the team, clients, and partners who have been part of that journey. Capitolis is an exceptional company with global reach, a strong commitment to innovation, and deep relationships with many of the world’s leading financial institutions. Joining them enables us to expand the solutions we bring to market and deliver even greater value to our clients.”
Craig Starble, Chief Executive Officer of eSecLending
“This is a transformational acquisition for Capitolis. We have been enjoying exceptional organic growth over the past few years across our existing business lines, and eSecLending adds a highly complementary new business that aligns closely with our clients’ evolving needs. We are thrilled to welcome Craig, the eSecLending team, and their clients to the Capitolis network as we broaden our offering and accelerate our growth.”
Gil Mandelzis, CEO and Founder of Capitolis
