Capitolis Acquires US Firm eSecLending for $200 Million

Israeli fintech unicorn Capitolis has acquired the American company eSecLending for $200 million in cash. eSecLending is a leading independent securities lending firm, working with major global asset owners including pension funds, insurance companies, and asset managers, acting as a liaison between them and global banks for securities lending.

Gil Mandelzis, founder and CEO of Capitolis, stated that eSecLending, based in Boston and other US cities, has been a long-time partner with complementary capabilities essential to Capitolis' operations. He noted that eSecLending serves approximately 35,000 pension funds. The acquisition talks began a year ago and have now concluded, marking Capitolis' fourth acquisition. Mandelzis highlighted eSecLending's 120 employees will join Capitolis' existing 200 staff.

Capitolis has raised around $300 million to date. eSecLending, in its 26 years of operation, has built extensive relationships with institutional investors, banks, and prime brokers. The company supports its clients' securities financing transactions and has experienced significant growth recently. This acquisition naturally expands Capitolis' platform by adding securities lending capabilities.

The integration aims to offer global banks a broader range of solutions to enhance efficiency, optimize resource utilization, and capitalize on new opportunities in securities lending, repo, and financing markets. Mandelzis described the deal as transformative for Capitolis, significantly advancing its development and deepening its integration with clients' core businesses. He emphasized the synergy between the companies will strengthen Capitolis' position as a leading global fintech innovator.

Craig Stambaugh, CEO of eSecLending, expressed enthusiasm about joining Capitolis, citing its global reach, commitment to innovation, and strong relationships with leading financial institutions. He believes this move will allow eSecLending to expand its market offerings and deliver additional value to its clients.