EquiLend, the securities lending trading platform owned by 10 major Wall Street firms, is being acquired by private equity firm Welsh, Carson, Anderson & Stowe (WCAS).
WCAS has agreed to acquire a majority stake in EquiLend for an undisclosed amount. It has also committed a further $200 million investment to support organic growth initiatives and acquisitions.
EquiLend was founded in 2001 by a consortium of global banks and broker-dealers and now has a client base of nearly 200 asset owners, agency lending banks, broker-dealers and hedge funds.
The firm's suite of technology supports all facets of a securities finance market participant’s business, including electronic trading, order management, post-trade automation, data and analytics, and regulatory.
Brian Lamb, CEO, EquiLend, says: “Our new partnership with Welsh, Carson, Anderson & Stowe will propel our business to new heights and enable us to do more than ever within securities finance and beyond. WCAS shares our client-centric vision and is a natural partner to support our mission of providing outstanding customer service and providing innovative technology solutions to the marketplace.”
Last year, the business settled a lawsuit brought by US public pension funds that accused it of facilitating market collusion by its owners. Goldman Sachs, Morgan Stanley, JPMorgan and UBS collectively agreed to pay $499 million to resolve the issue.