UK capital markets technology outfit Options has scored a significant $100 million investment from New York-based private equity house Bregal Sagemount.
The company, which began life in 1993 as a hedge fund technology services provider, has experienced a growth surge since repositioning to provide managed IT and outsourcing services across the full spectrum of capital markets activities.
With over 200 firms using its services globally, Options has nearly doubled staff numbers from 110 to 200 since the pivot. The group has experienced significant demand among cost-cutting Wall Street brokers, doubling revenues in the US alone from 2014 to 2016.
Options CEO, Nigel Kneafsey, comments: "We believe that the rapid growth in the business in the last few years is underpinned by the accelerated wave of outsourcing in financial services IT globally. Sagemount is the perfect partner to support our mission to become a global power in this high growth sector.”
He says the new investment will be used to pursue strategic growth initiatives, invest further in platform innovations, and expand Options’ reach in key financial centres globally.
A recent report from Opimas found that in 2017, fintech spending across all capital markets participants is projected to total more than $127 billion, with three areas standing out as the largest in terms of investment: order and execution management at $19 billion; post-trade transaction processing at $14.6 billion; and analytics at $12 billion.