Capitolis raises $220M from Wall Street banks at $1.9B valuation
What's the deal? Capitolis, a fintech that builds technology for banks and financial institutions, has raised $220 million, including a $120 million Series E equity round led by existing investor Citi. The financing values the company at $1.9 billion, up from $1.6 billion in its previous round in 2022.
Who's in? The equity round drew new strategic investors Bank of America, NomuraDealroom has a profile for this one. Try Dealroom →, and Tradeweb Markets, alongside existing backers Barclays, BNP Paribas, J.P. MorganDealroom has a profile for this one. Try Dealroom →, State Street, and UBS. Debt financing came from First Citizens Innovation Banking — formerly Silicon Valley Bank — Hercules CapitalDealroom has a profile for this one. Try Dealroom →, and Pinegrove Venture PartnersDealroom has a profile for this one. Try Dealroom →.
What's the money for? Most of it will fund Capitolis' acquisition of eSecLendingDealroom has a profile for this one. Try Dealroom →, a securities lending firm, in a deal announced last week. The purchase adds securities lending to Capitolis' resource optimization platform and expands its access to institutional asset owners.
Why the debt? Founder and chief executive officer Gil Mandelzis said the company deliberately chose a mix of equity and debt. "Debt is much cheaper for the company. We will soon start generating significant cash flow, and I prefer debt over equity," he said.
What's the endgame? Capitolis runs its Capital Marketplace and Portfolio Optimization businesses, helping banks manage funding, capital, and balance sheet challenges. Mandelzis expects the eSecLending deal to generate tens of millions of dollars in revenue as soon as next year.
The signal: At $220 million, this round ranks in the 91st percentile of all US Series E rounds on record. The deal also pulls several of the world's largest banks directly into Capitolis' shareholder base — a bet by Wall Street incumbents on technology built to make their own operations more efficient.
Read more: calcalistech.com
Image credit: epicharmus
