LDC invests in Etrading software

LDC, the private equity arm of Lloyds Banking Group, has made a significant investment in capital markets technology firm Etrading Software, a global provider of technology-led solutions to address highly complex and ever-evolving market and regulatory challenges. Etrading Software specializes in the provision of market and reference data used by international financial institutions. It is the primary service and technology provider to the Derivatives Service Bureau (DSB), the global numbering agency for over-the-counter (OTC) derivatives – a market the Bank for International Settlements valued at $2.5 billion by the end of 2021.

Etrading Software’s role as Management Services Partner (MSP) to DSB, headquartered in London, was recently expanded to include a new mandate awarded to DSB to operate the service that will generate Unique Product Identifiers (UPI) – an identifier that will allow regulators in G20 countries to collect and track OTC derivatives transaction data.

Etrading Software, in partnership with Coefficient Markets, is also a leading digital software provider to multinational corporate loan market players. The sell-side desktop technology (EPIC) and execution platform (EPIC MIRROR) provide financial institutions operating in the corporate loan market with a data aggregation tool that improves workflow, delivers efficiencies to users and brings electronic execution to the loan market.

LDC’s investment will support Etrading Software to continue to expand its range of technology-enabled services and expand its data services offering internationally. LDC supports the existing management team, led by CEO Sassan Danesh, who founded the business in 2004.

The transaction was led by Joseph Fison, supported by Alex White and Francesca Speke. Joseph Fison and Alex White will join Etrading Software’s board of directors, along with fintech industry veteran Emanuel Mond, who has been named chairman and has more than 25 years of experience building capital markets technology platforms.

Sassan Danesh, CEO of Etrading Software, said: “LDC’s investment will solidify our position as one of the leading technology providers to global capital markets. An immediate benefit is strengthening our proposal to create a Consolidated Tape market data infrastructure for increased market transparency in the UK and Europe.”

Grant Wilson, CEO of Etrading Software, said: “I am excited to focus on expanding Etrading Software services in the lending industry through our partnership with Coefficient Markets. Coefficient leverages Etrading Software’s technology development, platform business management, as well as our deep knowledge and expertise of the financial markets, to deliver intuitive front office solutions that can be seamlessly tailored and scaled across use cases.”

Joseph Fison, director of investment at LDC, added: “Etrading Software’s market-leading proposition has made it an integral part of the capital markets ecosystem. Its expertise in operating critical market infrastructures gives it the perfect platform to support public authorities and market participants in implementing future regulatory mandates, such as a consolidated tape for market data. We look forward to working with the team as they embark on the next phase of their growth journey.”

LDC was advised by PwC (Corporate Finance), Goodwin Procter (Legals), RSM (Financial and Tax Due Diligence) and ICAG Partners (Commercial Due Diligence). Etrading Software was advised by Norton Rose Fulbright, Quantuma, Rickard Luckin and DA Davidson.