Capitolis Raises $220 Million at $1.9 Billion Valuation
Translated & summarized from Calcalist by baba
Fintech firm Capitolis has raised $220 million in equity and debt financing at a $1.9 billion valuation. The funds will primarily support the company's $200 million acquisition of eSecLending, which is expected to significantly boost revenue.
The story in 5 lines · by baba
- Capitolis secured $220 million in funding, valuing the company at $1.9 billion.
- The funding includes a $120 million equity round led by Citi and other major banks.
- Debt financing was provided by First Citizens Innovation Banking and others.
- Most of the funds will finance the acquisition of eSecLending for $200 million.
- The acquisition is expected to add securities lending and boost revenue significantly.
Fintech company Capitolis announced Tuesday it has completed a $220 million funding round, comprising $120 million in equity and debt financing. The equity portion, a Series E round, values the company at $1.9 billion, an increase from its $1.6 billion valuation in 2022. Citi led the equity round, joined by new strategic investors Bank of America, Nomura, and Tradeweb Markets, alongside existing investors UBS, Barclays, BNP Paribas, J.P. Morgan, and State Street. First Citizens Innovation Banking, Hercules Capital, and Pinegrove Venture Partners provided the debt financing.
Capitolis operates a platform designed to help banks and financial institutions streamline their market activities through collaboration. The platform enables financial entities to share resources and transactions, aiming to improve capital efficiency and minimize risks. "This funding round is a significant milestone for Capitolis and a strong expression of confidence in our vision and our ability to realize it," said Gil Mandelzis, Founder and CEO of Capitolis. He added that the company is experiencing high growth and that the support from major global banks as investors demonstrates Capitolis becoming a significant strategic partner for them.
Mandelzis explained the decision to combine debt and equity financing, stating that debt is considerably cheaper. He anticipates the company will soon generate substantial cash flow and prefers debt over equity. The funding aims to strike a balance between strategic investment and debt, creating the new financing structure. The majority of the funds, $200 million, are earmarked for Capitolis's acquisition of eSecLending, announced last week. This acquisition will add securities lending capabilities to Capitolis's platform, broaden its access to institutional entities holding financial assets, and support the expansion of its solution offerings. Mandelzis projects the combined entity will generate tens of millions of dollars in revenue within the next year and significant revenue in the following year.
Mentioned
