Capitolis has agreed to acquire eSecLending, an independent securities lending business, for $200 million in an all-cash transaction. The deal marks Capitolis‘s fourth strategic acquisition in five years and extends the fintech company’s financial resource management platform to include securities lending capabilities serving pension funds, insurance companies, and asset managers globally.
- Deal value: $200 million, all-cash
- Target company: eSecLending, a 26-year-old independent securities lending business
- Client base: Major global banks and largest asset owners, including pension funds and insurance companies
- Seller: Parthenon Capital and eSecLending management team; Parthenon Capital to invest in Capitolis post-close
eSecLending operates an institutional investor network spanning every major bank and prime broker, supporting securities financing transactions across repo and financing markets. The acquisition adds infrastructure, expertise, and scale to Capitolis‘s existing suite of financial resource optimization solutions, creating a differentiated offering for banks and institutional investors seeking efficiency gains and resource optimization.
We’ve known the eSecLending team for years and have already been partnering to introduce new solutions to the market. We’ve seen firsthand the strength of their client relationships, the quality of their business, and the deep expertise of their team. Bringing eSecLending and Capitolis together expands our network and enhances our offering with securities lending capabilities that naturally complement our existing set of solutions.
– Okan Pekin, President, Capitolis
We are incredibly proud of what we’ve built at eSecLending and grateful to the team, clients, and partners who have been part of that journey. Capitolis is an exceptional company with global reach, a strong commitment to innovation, and deep relationships with many of the world’s leading financial institutions. Joining them enables us to expand the solutions we bring to market and deliver even greater value to our clients.
– Craig Starble, Chief Executive Officer, eSecLending
This is a transformational acquisition for Capitolis. We have been enjoying exceptional organic growth over the past few years across our existing business lines, and eSecLending adds a highly complementary new business that aligns closely with our clients’ evolving needs. We are thrilled to welcome Craig, the eSecLending team, and their clients to the Capitolis network as we broaden our offering and accelerate our growth.
– Gil Mandelzis, CEO and Founder, Capitolis
The transaction is subject to customary closing conditions, including regulatory approvals and antitrust clearance. eSecLending (Europe) Limited is not included in the deal. FT Partners and WilmerHale advised Capitolis, while Berenson & Company, Raymond James, Troutman Pepper Locke LLP, and Debevoise & Plimpton LLP advised eSecLending.
Okan Pekin, President of Capitolis. Source: LinkedIn
Craig Starble, Chief Executive Officer at eSecLending. Source: eseclending.com
Gil Mandelzis, CEO and Founder of Capitolis. Source: LinkedIn
