L Squared acquires Sterling Trading Tech

L Squared Capital Partners has acquired Chicago-based Sterling Trading Tech, a provider of trading solutions to the professional and retail global capital markets.

L Squared Capital Partners has acquired Chicago-based Sterling Trading Tech, a provider of trading solutions to the professional and retail global capital markets. The sellers included LLR Partners. No financial terms were disclosed.

PRESS RELEASE

Newport Beach, CA, September 8, 2021 – L Squared Capital Partners (“L Squared”) is pleased to announce the acquisition of Chicago, IL based Sterling Trading Tech (“STT” or the “Company”) from LLR Partners and other investors, a leading SaaS provider of financial technology for the global capital markets. The investment represents L Squared’s fourth platform investment in Fund III, a $505 million private equity fund that closed in September 2020. STT’s management also participated in the acquisition.

Sterling Trading Tech offers complete trading solutions to the professional and retail global capital markets. STT’s mission is to provide market-leading, cloud-based trading infrastructure, encompassing Trading Platforms, OMS, and Risk products to support both buy-side and sell-side firms. Clients include clearing firms, broker dealers, proprietary trading groups, and hedge funds in over 20 countries. In 2020, Sterling systems touched over 8% of all traded US stock volume.

“L Squared is excited to begin our partnership with the STT team whom we have found to be passionate about customer service and developing innovative products such as its OMS and risk platforms,” said Sean Barrette, Partner at L Squared and STT Board Member. “The incremental resources our strategic investment provides will allow the team to capitalize on the accelerating adoption of cloud-based solutions and serve larger institutional customers.”
In partnership with L Squared, STT plans to make strategic growth investments in both its product development and sales organizations to drive global adoption of its OMS and risk solutions along with the execution of strategic acquisitions to add asset classes and geographies to its suite of products.

“We are thrilled to partner with L Squared, who shares our vision for the future including building best-in-class technology. L Squared’s expertise will help us accelerate our growth,” said Farid Naib, STT CEO and Board Member. “Our plan is to continue as a market leader while expanding our product suite and expanding into new markets and asset classes. We will maintain our commitment to innovation and unrivaled customer service for our clients.”
Raymond James advised STT and LLR Partners on the transaction and Faegre Drinker Biddle & Reath LLP served as legal counsel. Vedder Price served as legal counsel to L Squared Capital Partners. The L Squared deal team included Sean Barrette, Jeff Farrero,
Edmund Montanari, and Jack Foley. Maxime Seguineau served as an operating advisor to L Squared and has joined the STT Board of Directors.

About L Squared Capital Partners
L Squared Capital Partners is an investment firm headquartered in Newport Beach, CA that seeks to make long-term investments in leading growth companies that operate in targeted sectors: Education Technology, Tech-Enabled Services & Software, and Industrial Technology & Services. Our unique investor base of family offices enables us to focus on long-term value creation driven by revenue and earnings growth, not financial engineering or market timing. The principals of L Squared have worked together for over a decade and have over 100 years of combined experience investing in growing private companies.
For additional information, please visit www.LSquaredCap.com.