New York and London-based Credit Benchmark, a provider of credit analytics, has raised $7 million in funding. The lead investors were Index Ventures, Balderton Capital, Communitas Capital and a group of private investors that includes former Goldman Sachs Vice Chairman and co-CEO of Goldman Sachs International Michael Sherwood. In addition to the funding, Sherwood will join Credit Benchmark’s board of directors.
New York – October 18, 2018 — Credit Benchmark, the leader in consensus based credit analytics, has announced plans to expand its offerings and scale its contributed data model, solidifying its standing as the largest source of credit risk data for rated and un-rated entities. The expansion will be fueled by a $7 million investment led by Index Ventures, Balderton Capital, Communitas Capital and a group of private investors that includes former Goldman Sachs Vice Chairman and the co-chief executive officer of Goldman Sachs International Michael Sherwood. Mr. Sherwood will also join the Credit Benchmark Board of Directors.
Having grown rapidly since publishing its first credit risk views in 2015, Credit Benchmark is the first financial data company to provide consensus credit risk estimates on a global range of corporates, sovereigns, financial institutions, and funds. The company draws its credit risk insights from a contributed data model that harnesses the collective intelligence of the world’s leading financial institutions. Now receiving contributed credit risk and probability of default data from a collection more than 30 of the world’s top financial institutions – a list that includes all of the largest banks in North America and the UK – Credit Benchmark is now publishing credit risk views on roughly 22,000 counterparties, the largest and most unique coverage globally.
“We have created the conditions to support rapid adoption of our products and data, and this new round of funding will help us reach our goal of becoming a global standard for credit and risk management,” said Donal Smith, Credit Benchmark Executive Chairman. “I look forward to working closely with our investors, contributors, and board members to seize this opportunity.”
With this new infusion of capital, Credit Benchmark plans to grow its contributor base – with the goal of reaching 50 contributor banks by the end of 2019. It also plans to add non-bank contributors, such as insurance companies, which maintain rigorous credit risk analytics, to broaden its credit risk purview. Additionally, Credit Benchmark is developing new technology and research capabilities that will expand its analytics product offerings for banks, asset managers, and insurers. The company will also continue to expand its team following the recent appointments of industry veterans William Haney as CEO and Nicholas Pastoressa as Chief Product and Technology Officer.
“Over the course of the last three years, Credit Benchmark has expanded its coverage from c.1,000 entities based on the consensus estimates of just six contributors to more than 22,000 entities with insights derived from three dozen of the world’s largest financial institutions,” said William Haney, CEO of Credit Benchmark. “The appetite for our consensus view of credit risk is so enormous because it is differentiated from the traditional credit rating; it is truly comprehensive, with deep reach into the un-rated universe; and it is trusted because it is based on the internal regulatory processes of the world’s leading financial institutions.”
Both Balderton Capital and Index Ventures were involved with Credit Benchmark’s previous rounds of funding. To-date, Credit Benchmark has raised a combined $34 million in venture backing since its launch in 2015.
About Credit Benchmark
Based in London and New York, Credit Benchmark is a financial data analytics company offering an entirely new source of credit risk data: the credit risk assessments of the world’s leading financial institutions. Credit Benchmark was founded in 2012. The company offers an objective, dynamic and forward looking measure of risk that reflects the aggregated views of multiple financial institutions that have direct exposure to the underlying entities. Its coverage includes a sizable and granular universe of tens of thousands of unrated entities where no market-accepted credit metrics exist today.