eSecLending

Fintech · Capital Markets · Securities Lending

Acquisition

Capitolis to acquire eSecLending for $200M in all-cash deal

The purchase folds securities lending into Capitolis's optimization platform and hands it access to the world's largest pension and insurance asset owners.

• Capitolis agreed to acquire eSecLending, an independent securities lending firm, for $200 million in an all-cash transaction.
• eSecLending, founded 26 years ago, helps pension funds, insurers and asset managers lend securities to major global banks and prime brokers.
• Capitolis is buying eSecLending from Parthenon Capital and its management team; Parthenon Capital will in turn invest in Capitolis as part of the deal.
• eSecLending's roughly 120 employees, based in Boston and other US cities, will join Capitolis' existing 200-person workforce once the deal closes.
• This is Capitolis' fourth strategic acquisition in five years, following a run of organic growth across its core optimization business lines.
• The deal excludes eSecLending (Europe) Limited, which is not part of the transaction but will continue providing services to eSecLending.
• By bolting securities lending onto its financing and repo optimization tools, Capitolis moves toward becoming a one-stop resource-management layer for banks and institutional investors rather than a single-product vendor.