Miami International Holdings (MIH) – a technology-driven leader in building and operating regulated financial markets across multiple asset classes – announced a $100 million investment from Warburg Pincus. Warburg Pincus could expand its investment in MIH to support additional growth subject to certain conditions.
This growth investment will accelerate the next phase of MIAX’s global expansion as it executes on its strategy of building a diversified revenue stream across multiple asset classes and geographies. This funding will be used for the construction and fit-out of a physical trading floor in Miami, Florida, for MIAX Sapphire, MIH’s fourth national securities exchange for trading U.S. multi-listed options.
MIAX Sapphire will be operating an electronic exchange and physical trading floor. The electronic exchange successfully launched on August 12, 2024, with the trading floor in Miami scheduled to go live in 2025.
MIAX Sapphire will be the first national securities exchange to establish operations in Miami. And this new trading facility will include a next-generation trading floor, ancillary office space for MIAX employees and market participants, conference facilities and broadcast media space.
The funding will also support further growth and expansion of MIH’s agricultural and financial futures businesses on its two U.S. futures exchanges, Minneapolis Grain Exchange (MGEX) and MIAXdx including the development of new matching engine and clearing technology using MIH’s proprietary technology. And the funding will drive the company’s expansion plans into international markets including the development and trading of new proprietary and other financial products.
Lee Becker will be joining the board of directors of MIH. And Mark Messing, Vice President at Warburg Pincus and member of the Capital Solutions team, will attend board meetings as a visitor.
Piper Sandler acted as financial advisor to MIH and Broadhaven Capital Partners acted as financial advisor to Warburg Pincus in connection with the transaction. Davis Polk & Wardwell served as financing counsel to Warburg Pincus and Cleary Gottlieb Steen & Hamilton served as financing counsel to MIH. Gallagher, Briody & Butler serves as corporate counsel to MIH. Appleby served as special financing counsel in Bermuda to Warburg Pincus and BeesMont Law Limited serves as legal counsel in Bermuda to The Bermuda Stock Exchange (BSX), a wholly owned subsidiary of MIH.
KEY QUOTES:
“We are pleased to welcome Warburg Pincus as a strategic partner and look forward to leveraging its highly respected expertise and deep network of relationships in global financial services. Together with our exchange member firms we believe we have assembled a group of the top financial partners in the world. The investment will provide MIH with additional funding to expand strategic partnerships in financial futures and proprietary products and will also provide capital to pursue acquisitions in the U.S. and internationally to accelerate our continued growth.”
- Thomas P. Gallagher, Chairman and CEO of MIH
“Tom Gallagher and the leadership team at MIAX have successfully engineered a technology-driven family of exchanges that set a new standard of reliability and excellence in the U.S. options trading industry. Our investment, along with ample dry powder to help support future growth, reflects our confidence in MIAX’s potential. We are thrilled with MIAX’s progress to date and excited about the significant opportunities for MIH.”
- Gaurav Seth, Managing Director, Head of Capital Solutions, Americas at Warburg Pincus
“Our investment provides capital at a pivotal moment for MIAX. With MIAX’s strong, collaborative relationships with leading market participants, this investment supports our conviction in the entire MIAX management team and its strategy to drive continued growth and expansion across multiple asset classes in the exchange space.”
• ⁃ Lee Becker, Managing Director and member of the Capital Solutions team at Warburg Pincus
