EquiLend to be acquired by PE firm WCAS

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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.