The Carlyle Group has agreed to acquire a majority stake in Calastone, a global funds network. The sellers include Octopus Ventures and Accel. No financial terms were disclosed. Calastone management will retain a minority stake in the company.
Calastone, the largest global funds network, is pleased to announce that global investment firm The Carlyle Group (NASDAQ: CG) has today reached an agreement to acquire a majority stake in the business from its current shareholders, including Octopus Ventures and Accel. Calastone management retains a minority stake. The transaction is subject to regulatory approval. Financial terms of the transaction are not disclosed.
Founded in 2007, Calastone has grown to become the largest global funds network and has transformed the mutual funds sector through its innovative use of technology and network interoperability. Calastone’s network brings together the entire fund trading process, offering automated order routing, settlement, dividend and transfer services to asset and fund managers.
In May 2019, Calastone launched its Distributed Market Infrastructure (DMI), enabling the full automation and digitalisation of the fund transaction process via distributed ledger technology. Leveraging this technology innovation, Calastone has scaled and diversified its strategy to develop from purely Mutual Fund services to offer automated fund services to the Money Market Funds sector. Today, the company serves over 2,300 clients in 43 countries and territories processing £200 billion of investment value each month.
Funds affiliated with The Carlyle Group will support Calastone in accelerating its growth, including broadening its market-leading product suite as well as the applications of its technology, and international expansion.
Commenting on the acquisition, Calastone’s Chief Executive Officer Julien Hammerson, said: “We have made great strides in the past decade to meet the needs of our customers and their investors in reducing friction and costs within the mutual fund industry. Our business has grown from strength to strength and has created the Distributed Market Infrastructure (DMI), a hugely innovative and market leading DLT based platform to drive yet more efficiency. At the same time, we have continued to expand internationally and created new opportunities in Money Market funds.
“Everyone at Calastone has much to be proud of and there is huge potential for growth based on the technology platform and unique service offering we have created. We are delighted to have the full support of The Carlyle Group to capitalise on this opportunity and take the company forward into the next phase of its development and growth.
“I would also like to thank Octopus Ventures and Accel as well as our non-executive Directors Chris Wade and Chairman Cristóbal Conde, who have all contributed greatly to our success.”
Fernando Chueca, a Managing Director in The Carlyle Group’s advisory team, said: “Calastone is a global leader and innovator in the funds technology industry, a large and growing market. Since its inception, the company has achieved remarkable growth through replacing legacy and complex workflows with truly innovative solutions for its clients. We are delighted to partner with Julien and the management team and look forward to leveraging our global platform, network of relationships, and deep expertise in Financial Services and Technology to support Calastone in its next phase of growth.”
Barclays have acted as advisors to Calastone throughout the transaction.
Calastone is the largest global funds network, connecting the world’s leading financial organisations.
Our mission is to help the asset management industry transform by creating innovative new ways to automate and digitalise the global investment funds marketplace, reducing frictional costs and lowering operational risk to the benefit of all. Through this, we generate the opportunity for the industry to deliver greater value back to the end investor.
Over 2,300 clients in 43 countries and territories benefit from Calastone’s services, processing £200 billion of investment value each month.
Calastone is headquartered in London and has offices in Luxembourg, Italy, Hong Kong, Taiwan, Singapore, New York and Sydney.
ABOUT THE CARLYLE GROUP
The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across four business segments: Corporate Private Equity, Real Assets, Global Credit and Investment Solutions. With $221 billion of assets under management as of June 30, 2020, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. The Carlyle Group employs more than 1,800 people in 31 offices across six continents. Further information is available at www.carlyle.com. Follow The Carlyle Group on Twitter @OneCarlyle.