Capitolis raises $220 million from Wall Street giants at $1.9 billion valuation
Citi, Bank of America, Nomura, Tradeweb, J.P. Morgan, UBS and other major financial institutions are backing the fintech as it expands into securities lending through its eSecLending acquisition.
Capitolis, a fintech company that develops technology for banks and financial institutions, has raised $220 million in new financing, including a $120 million Series E equity round that values the company at $1.9 billion.
The round also includes debt financing. Capitolis was valued at $1.6 billion in its previous funding round in 2022.
The equity round was led by existing investor Citi and included new strategic investors Bank of America, Nomura and Tradeweb Markets, as well as existing investors Barclays, BNP Paribas, J.P. Morgan, State Street and UBS. Additional existing and new financial investors also participated in the round.
The debt financing will be provided by First Citizens Innovation Banking, formerly Silicon Valley Bank, Hercules Capital and Pinegrove Venture Partners.
Speaking to Calcalist, Gil Mandelzis, Capitolis’ founder and CEO, said the company deliberately chose a combination 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. I believe in strategic investment, like the kind we just secured. We struck a balance between strategic equity raising and debt, resulting in this new financing round,” he said.
Mandelzis said most of the new capital will be used to support Capitolis’ recent acquisition of eSecLending, a deal announced last week.
“Most of the funds are allocated to our recent acquisition, which is set to generate tens of millions of dollars in revenue as early as the coming year,” Mandelzis said. “I anticipate that the combined company will achieve significant revenue this year, with even greater growth expected next year.”
The eSecLending acquisition will add securities lending to Capitolis’ financial resource optimization platform and expand the company’s access to a network of institutional asset owners. Capitolis said the deal will also strengthen the foundation for developing additional financial solutions.
Capitolis operates across its Capital Marketplace and Portfolio Optimization businesses, working with banks and other financial institutions on funding, capital and balance sheet challenges. Its technology is designed to help financial institutions optimize their use of financial resources and improve market efficiency.
The new financing also brings several of the world’s largest financial institutions directly into Capitolis’ shareholder base. Bank of America, Nomura and Tradeweb Markets are joining as new strategic investors, alongside existing investors that include Citi, Barclays, BNP Paribas, J.P. Morgan, State Street and UBS.
