Pimco, a leading global investment management firm, has entered into a strategic partnership with Beacon Platform Incorporated, a financial technology company specialising in the development of cloud-based, end-to-end development and production platforms.
As part of the partnership, Pimco has acquired a minority stake in Beacon and will license the Beacon platform to aid in delivering quantitative research and analytics to Pimco portfolio managers globally.
Beacon’s platform allows investment firms to build their proprietary analytical models and tools in a controlled, secure environment connected to relevant market and enterprise data. Pimco will integrate the platform with its valuation models, risk analytics and technology. The platform will be deployed globally to deliver proprietary models developed in-house by Pimco’s quantitative analysts and technologists and will support the firm’s 240 portfolio managers around the world.
“Quantitative models and technology are integral to Pimco’s investment process and this strategic partnership with Beacon will allow us to continue to innovate and evolve as the industry changes,” says Emmanuel Roman, Pimco’s Chief Executive Officer. “Our portfolio managers around the world will have broad access to Beacon’s platform for faster and more efficient use of Pimco’s proprietary risk analytics and quantitative research, helping them implement investment strategies to deliver attractive returns for our clients.”
Beacon co-founders Kirat Singh and Mark Higgins added: “We’re excited to partner with Pimco at a time when a seismic shift in technology has created opportunities to better access and deploy analytical investment models. Beacon’s modern software platforms give forward-thinking firms like Pimco the ability to adapt and thrive as the pace of innovation continues to accelerate.”
Pimco’s partnership with Beacon is part of the firm’s broader strategic efforts to further integrate technology and quantitative research into our investment process. Pimco recently announced it will open an office in Austin, Texas later this year, in part to recruit talented technologists to advance the firm’s underlying investment-related infrastructure.