Siepe, a provider of software and technology-enabled services for private credit and CLO managers, announced it has raised $30 million in a Series B funding round led by WestCap, a strategic operating and investing firm with $6 billion in assets under management (AUM). This funding will drive a multi-product roadmap, expand AI/ML capabilities, and strengthen strategic partnerships.
These initiatives will help support the accelerated capital flows and eliminate inconsistent data and processes across the Collateralized Loan Obligation (CLO) and private credit ecosystem. Siepe designed its solutions and services that enable strategic business and investment decisions for the front, middle, and back office teams of private credit asset managers and CLOs.
The company’s solution suite puts entire investment lifecycles into perspective, providing customers with a single source of truth and full transparency into real-time and accurate data to increase oversight and streamline workflows. By utilizing AI technology, Siepe’s solutions also eliminate manual processes that can be used to drive bottom-line growth for its clients’ customers and optimize investments.
Siepe has seen significant growth across technology and service business lines in H1 2024 with private credit managers. And this includes adding nineteen CLO and private credit deals with eight top-tier US CLO managers – which accounts for over $7.7 billion in new assets under administration (AUA). Plus, the company also onboarded two new front-office software clients, one with $80BN AUM in private credit assets and the other with $6 billion in total AUM and launched a new private credit fund.
The Siepe team will utilize WestCap’s experience in the private markets ecosystem, specifically around financial technology and data management workflows.
The firm is also an early and material investor in iCapital and Addepar. WestCap’s support of Siepe will be led by:
1.) The firm’s founder Laurence A. Tosi (former CFO of both Airbnb and Blackstone and COO of Merill Lynch Investment Banking and Trading). As a founder and investor, he created several industry-changing platforms to solve some of the most pressing challenges in private markets, including Ipreo, TMC Bonds and iLevel.
2.) WestCap Partner, Co-COO and Head of Strategic Operators Kevin Marcus, who who will join the Siepe board and bring his experience as the co-founder and former President of iPreo (acquired by IHS Markit).
In connection with the new funding, Siepe appointed Mark Schultis as President. Schultis joined Siepe as an Advisor in October 2023, bringing nearly two decades of experience focused directly in the credit and CLO world. Previously, he was CEO at SE2 LLC and a Partner and Senior Vice President at IHS Markit, where he ran the Wall Street Office (WSO) business.
The new executive and board membership line-up complements Siepe’s deep bench of senior leadership and extensive industry experience. Before founding Siepe, Michael Pusateri served as Chief Technology Officer at Carlson Capital and Highland Capital Management. And the company’s board members include Robert Tomicic, a former Founder of Virtus Partners, and Ann Kono, former Chief Information and Risk Officer for Ares Management Corporation.
Ryan Benevides (Principal at WestCap) – who will also join the Siepe board, and previously held roles within Blackstone Credit.
KEY QUOTES:
“The new capital will help us continue our momentum in deploying integrated solutions and best-in-class service for fund managers in the private credit and broadly syndicated bank debt sector. Our mission is to help credit managers better leverage their data to reduce operational risk and increase alpha.”
- Michael Pusateri, CEO and Founder of Siepe
“The growth of private credit markets has outpaced investment in technology and innovation, causing inefficiency, lack of insight and control over private assets. These are the challenges that Siepe is addressing with a trusted solution that brings the entire investment lifecycle into perspective.”
- Laurence A. Tosi, Managing Partner and Founder of WestCap
“I’m thrilled to join Siepe at this pivotal moment in their journey. Michael and team have always taken a technology first approach to building products and services for their customers, which is a key differentiator in the market today. This new funding will accelerate our ability to scale our business, better support our customers and drive innovation in the industry, particularly around connectivity, quality and data transparency.”
- Mark Schultis
