Capitolis raises $220M, including a $120M Series E led by Citi at a $1.9B valuation, to fund its eSecLending acquisition

Capitolis has closed $220 million of financing: a $120 million Series E led by existing investor Citi at a $1.9 billion valuation, plus debt from First Citizens Innovation Banking, Hercules Capital and Pinegrove Venture Partners. New strategic investors Bank of America, Nomura and Tradeweb Markets joined, alongside existing backers Barclays, BNP Paribas, J.P. Morgan, State Street and UBS. The Series D in 2022 valued the company at $1.6 billion.

Founded in 2017 by CEO Gil Mandelzis, Igor Teleshevsky and Thomas Glocer, the New York company builds capital-markets technology that helps banks and institutional investors optimise capital and balance sheets, compressing and novating derivatives and financing exposures.

Most of the new capital goes to the acquisition of securities-lending agent eSecLending, announced last week, which Mandelzis says will add tens of millions in revenue from next year. He told Calcalist the company chose a mix of strategic equity and cheaper debt because it expects to generate significant cash flow soon.