WCAS to Buy Securities Lending Firm EquiLend

Welsh, Carson, Anderson & Stowe (WCAS), a tech-focused private equity firm, has agreed to buy a majority stake in EquiLend, a technology provider for the securities finance market owned by a consortium of global banks and broker-dealers.

The size of WCAS’ majority interest and the acquisition price were not disclosed. The deal is expected to be completed in the second quarter.

WCAS has also put aside $200 million to support EquiLend’s expansion plans and acquisitions.

The company offers a suite of financial technology solutions to support all aspects of the securities finance transaction value chain, such as electronic trading, order administration, and post-trade automation. It processes $2.4 trillion in monthly transactions.

Since its inception in 2001, EquiLend has grown to almost 200 asset owners, agency lending banks, broker-dealers, and hedge funds.

“Given WCAS’s experience investing in financial technology over the last 40 years, we have a deep appreciation for EquiLend’s role as an essential market infrastructure provider serving the largest and most sophisticated financial institutions in the world,” said Sidney Ouyang, Principal at WCAS.

EquiLend’s current owners include JP Morgan, National Bank of Canada, Bank of America Merrill Lynch, BlackRock, Credit Suisse, Goldman Sachs, Morgan Stanley, Northern Trust, State Street and UBS.