Capitolis to Acquire eSecLending for $200 Million

Why Is Capitolis Acquiring eSecLending?

The acquisition will allow Capitolis to add securities lending to its existing financial resource optimization solutions.

The combined platform will offer services across securities lending, repo and financing markets helping banks and institutional investors improve resource efficiency and access new opportunities. The deal will also give Capitolis access to eSecLending’s network of institutional asset owners.

Previous Ownership

Capitolis is acquiring eSecLending from Parthenon Capital and eSecLending’s management team. As part of the transaction Parthenon Capital will also invest in Capitolis.

Leadership Comments

Okan Pekin, President of Capitolis, said the acquisition will expand the company’s network and add securities lending capabilities that complement its existing solutions.

Craig Starble, CEO of eSecLending said joining Capitolis will allow the company to expand its solutions and provide greater value to clients.

Gil Mandelzis, CEO and Founder of Capitolis described the acquisition as an important addition to the company’s existing business lines and said it aligns with changing client needs.

Deal Status

The transaction is subject to customary closing conditions, including required regulatory approvals and antitrust clearance. eSecLending (Europe) Limited is not included in the transaction and will continue providing services to eSecLending.

About Capitolis

Founded in 2017, Capitolis is a financial technology company that develops solutions for banks and institutional investors. Its platform focuses on improving access to capital and helping financial institutions optimize their resources.

The company is backed by investors including Canapi Ventures, 9Yards Capital, Andreessen Horowitz, Index Ventures, Sequoia Capital and Spark Capital, along with several global banks.

About eSecLending

Founded 26 years ago, eSecLending is an independent securities financing company that provides securities lending and collateral management solutions to institutional investors.

Its clients include pension funds insurance companies and asset managers. The company has built relationships with major banks and prime brokers and supports institutional investors in managing securities lending strategies and collateral.

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