Private equity firm buys eSecLending 13 August 2013Boston Reporter: Mark Dugdale
Image: Shutterstock
Securities lending agent eSecLending is under new ownership.
Parthenon Capital Partners, a private equity firm based in Boston and San Francisco with approximately $2 billion of capital under management, has bought the company for an undisclosed sum.
Craig Starble, who was previously an executive vice president and head of securities finance at State Street as well as CEO of Premier Global Securities Lending, will co-invest in eSecLending.
He will also join the company’s management team as CEO.
Starble said: “I am thrilled to partner with Parthenon and eSecLending. The merits of a boutique, independent service provider have become increasingly evident in the current market environment where clients are seeking aligned interests and value-added, tailored solutions. I look forward to joining the team and collaborating with an innovative company to build upon and execute their strategy and goals.”
Chris Jaynes, eSecLending’s current co-CEO and one of the founding members of the company, will remain as president, responsible for client management, strategy and business development.
He said: “We are excited about the transaction as it further strengthens our business, preserves our independence and maintains continuity of our management team and key personnel.”
“In addition, we look forward to leveraging Starble’s leadership experience and perspective to further enhance our offering.”
Current eSecLending co-CEO Karen O’Connor will retire from the company once the transaction is complete. The most recent addition to its management team is chief risk officer Peter Economou, who joined in August 2012, having previously worked as executive vice president and global head of securities finance and portfolio solutions at State Street.
“We are thrilled to partner with Starble and the eSecLending executive team to continue to grow the company,” commented Brian Golson, managing partner at Parthenon Capital Partners. “[The company] is uniquely positioned to help beneficial owners maximise the risk adjusted return from their securities lending programmes through its unconflicted and differentiated business model.”
Zach Sadek, principal at Parthenon Capital Partners, revealed that the private equity firm undertook years of research into securities finance before committing to the deal to buy eSecLending.
He said: “After years of research in the securities lending industry and over a decade of effort in the financial exchange sector, we are attracted to eSecLending’s innovative business model as it is well placed to capitalise on the continued changes underway in the market. We are excited to close a transaction with a world-class independent franchise and a talented CEO.”
Securities lending agent eSecLending was formed as a subsidiary of Old Mutual in 2000 when it bought United Asset Management.
TA Associates, a private equity firm with a $16 billion capital base, and eSecLending management recapitalised the company in May 2006.
NO FEE, NO RISK 100% ON RETURNSIf you invest in only one securities finance news source this
year, make sure it is your free subscription to Securities Finance Times
Image: Shutterstock 