Canadian risk management outfit Algorithmics has won long-term refinancing from its existing investors and announced a change in leadership as Michael Zerbs takes over from founder Ron Dembo as acting CEO.
Investors in the latest round of refinancing include Morgan Stanley, Commerzbank, American International Group (AIG), CIBC Capital Partners, Royal Bank of Canada, and Vengrowth Investment Fund.
Don Callahan, managing director, Morgan Stanley, comments: "Over the past year, the company has improved its revenues and profitability, built its global client base and solidified its position as the world leader in market, credit and collateral enterprise risk management software for tier-one financial service firms."
Coincident with the new funding, Algorithmics founder and CEO, Ron Dembo is stepping away from day-to-day operations after 15 years at the company's helm to take on a new role as 'founding chairman'.
He says: "Operationally, Algorithmics is now on a strong footing, with solid earnings last year, a strengthened management team and a new capital structure. It is an opportune time for me to redirect my focus...to concentrate on the company’s long-term vision."
This will entail working to promote the company’s philosophy and approach to risk management globally, the identification of customer and industry opportunities in the run-up to the Basel II Accord, and the promotion of enterprise risk management solutions in new markets.
Zerbs, a 15-year Algorithmics' veteran, was promoted from vice president of research and product marketing, to chief operating officer in January 2002.