Israel-based Capitolis, the technology company helping to create safer and more vibrant capital markets, has today announced the acquisition of Capitalab, a leader in Rates Portfolio Compression and Margin Optimization, from BGC Group for a purchase amount of $46 million.
This acquisition will allow Capitolis, a market leader in the optimization and compression space, to offer more solutions to the industry and unlock additional innovation to address emerging client needs.
The acquisition follows a period of rapid growth for Capitolis, in which the company launched multiple new products and experienced strong network expansion over the past year. The addition of Capitalab expands the company’s growing network of the world’s most important financial institutions and creates opportunities to bring in more market participants through Capitalab’s strong footprint in Rates Portfolio Compression and Margin Optimization. Capitolis will build on Capitalab’s deep domain expertise and extensive client relationships. To date, Capitalab has compressed a gross notional amount of more than $10 trillion of options contracts.
capital markets and, when properly executed, truly help the financial system and its participants,” said Gil Mandelzis, CEO and Founder of Capitolis. “Capitalab’s highly innovative technology complements our existing suite of award-winning solutions and together we will create a ‘one-stop shop’ for compression. We look forward to welcoming the team and believe that together we can take their unique offering to the next level.”
“We are thrilled to join forces with Capitolis, which will allow us to combine our strengths, talents and shared vision to create something even more remarkable,” said Gavin Jackson, Founder and CEO of Capitalab. “This powerful combination will enable us to deliver an even more exceptional service to our clients, ensuring their needs remain at the heart of everything we do.”
Gavin Jackson will become part of the Capitolis executive team. This deal follows the recent investment in Capitolis by major global financial institutions, including Citi, Morgan Stanley, State Street and UBS, and the company’s 2021 acquisition of LMRKTS.
About Capitolis
Founded in 2017 with offices in New York, London and Tel Aviv, Capitolis is a technology company creating safer and more vibrant financial markets by unlocking capital constraints and enabling greater access to more diversified capital and investment opportunities. Rooted in advanced technology and deep financial expertise, Capitolis powers groundbreaking financial solutions that drive growth for global and regional banks – and institutional investors alike.
Capitolis is backed by world class venture capital firms, including Canapi Ventures, 9Yards Capital, SVB Capital, Andreessen Horowitz (a16z), Index Ventures, Sequoia Capital, Spark Capital, and S Capital, as well as leading global banks such as J.P. Morgan, Citi and State Street.
About CAPITALAB
Founded in 2015, CAPITALAB provides innovative solutions to users of OTC Derivatives (investment banks, hedge funds and other financial institutions.) CAPITALAB focuses on optimising portfolios and risk to help reduce capital requirements and the credit & operational risks involved in running market activities.
