Citi, JPM, State Street Make Strategic Investment in Capitolis

Capitolis, an SaaS platform that provides financial resource optimisation for capital markets, today announces the completion of a strategic investment from Citi, JP Morgan and State Street.

The transaction represents a collaborative effort by the three leading global financial institutions to drive further adoption of Capitolis’ proprietary technology platform, which helps financial institutions free up capital and remove barriers that would otherwise restrict trading, according to a statement. Capitolis enables firms to optimise their balance sheet exposures through collaborative technology by eliminating unnecessary positions and finding the most suitable party to hold the remaining positions, the firm adds.

To date, Capitolis says it has eliminated $5 trillion in overall positions for more than 50 financial institutions, including many of the world’s largest banks, as well as leading hedge funds and asset managers.

“We are excited to have three of our trusted partners provide further support for our vision and business model focused on transforming the marketplace for the benefit of all participants,” says Gil Mandelzis, CEO and founder of Capitolis. “While we have made great strides over the past three years since starting the company, it is only the beginning of our work in creating a new industry standard through collaboration, innovation and technology. There is much more transformation yet to come.”

The announcement follows a $40 million Series B funding round in November 2019, led by Spark Capital and SVB Capital, with participation from existing investors Index Ventures, Sequoia Capital and S Capital. Capitolis intends to use the funds from this latest investment to further accelerate its technology and product development, as well as expand sales and marketing initiatives in the months ahead.

“We are proud to support Capitolis and its innovative approach to capital optimisation and efficiency,” says Okan Pekin, global head of Securities Services at Citi. “We have been growing supporters of the platform since its inception and believe Capitolis’ unique approach will play a significant role in enhancing global markets by driving increased industrywide collaboration to achieve higher growth.”

“Capitolis’ approach to innovation within the financial markets is unique and transformational,” says Troy Rohrbaugh, head of Global Markets, JP Morgan. “We are happy to support them as they invest and build technology that helps free up capital creating greater efficiencies within the global markets industry.”

“State Street is very pleased to announce this latest investment, which is another significant milestone in our three-year partnership with Capitolis,” adds Tobias Krause, head of Global Markets Resource Management for State Street. “Their products have improved resource efficiencies and unlocked previously idle capacity in OTC markets. This ultimately helps our organisation deliver better results on behalf our clients and ensures market participants have great access to financial resources. We look forward to continuing our work with Capitolis.”

“It’s been a pleasure to work with these three leading financial institutions,” says Tom Glocer, executive chairman of Capitolis. “It is the logical next step to add them to our capitalisation table, and we look forward to their guidance in evolving our services to meet the needs of our clients for years to come.”

 

Julie Ros

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