EquiLend, the securities lending trading platform owned by ten major Wall Street firms, is set to be acquired by private equity firm Welsh, Carson, Anderson & Stowe (WCAS).
WCAS has agreed to acquire a majority stake in EquiLend for an undisclosed amount and will also invest an additional $200 million to support organic growth initiatives and acquisitions.
Founded in 2001 by a consortium of global banks and broker-dealers, EquiLend now serves nearly 200 clients, including asset owners, agency lending banks, broker-dealers, and hedge funds. The firm offers a comprehensive suite of technology that supports all aspects of a securities finance operation, including electronic trading, order management, post-trade automation, data and analytics, and regulatory compliance.
Brian Lamb, CEO of EquiLend, stated, “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 innovative technology solutions to the marketplace.”
Last year, EquiLend settled a lawsuit filed by US public pension funds that alleged it facilitated market collusion among its owners. Goldman Sachs, Morgan Stanley, JPMorgan, and UBS collectively agreed to pay $499 million to resolve the matter.