Tue, Mar 31, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Goldman Sachs sells majority stake in financial technology firm REDI to consortium of financial institutions

Wednesday, July 17, 2013
Opalesque Industry Update - The Goldman Sachs Group, Inc. today announced the sale of a majority equity interest in REDI, the technology provider for the leading REDIPlus® Execution Management System (EMS), to a consortium of investors including BofA Merrill Lynch, Barclays, BNP Paribas, Citadel and Lightyear Capital. Goldman Sachs is retaining a significant minority equity stake in the company.

This transaction establishes REDI as an independent financial technology company. The consortium of investors enhances REDI’s business by providing a broad range of benefits to the marketplace through an expanded broker network, broad cross-asset capabilities, expansive global coverage and industry-leading customer service. In addition, REDI will leverage the valuable strengths of its partners to deliver innovative broker-neutral solutions that span across the trade lifecycle, enrich the client experience and bring added value to customers.

“We are pleased to assemble an impressive consortium of market-leading participants to support the further growth of the REDI business and expand its reach to more clients, geographies and asset classes,” said Darren Cohen, global co-head of Principal Strategic Investments at Goldman Sachs. “The new independent REDI is a strategic initiative for Goldman Sachs and the firm is committed to its future success as a separate, multi-dealer platform.”

REDI’s new headquarters are located in New York City, supported by five regional offices in Boston, San Francisco, Chicago, London and Hong Kong. The core product, technology, sales and support teams associated with the REDI business will continue to manage and invest in the platform under the new ownership structure. Rishi Nangalia, who previously co-managed the Goldman Sachs Electronic Trading Business Development group, will serve as the company’s Chief Executive Officer.

“Our team understands the needs of the investment community and remains passionate about delivering technology solutions that will drive the industry forward,” said Mr. Nangalia. “Our clients are at the core of everything we do and we look forward to continuing to develop our community of investors, brokers and content providers.”

Representatives from each of the investor firms will join the REDI board. “BofA Merrill Lynch is excited to be a strategic partner with REDI and merge our own EMS technology onto a global platform with proven capabilities across multiple asset classes,” said Bina Kalola, head of Global Equities Strategic Direct Investments at BofA Merrill Lynch.

“Barclays is pleased to be part of establishing REDI as an independent company with an innovative multi-broker and multi-asset platform,” said Thomas Chippas, head of Prime Services Execution at Barclays. “We plan to make our award-winning BARX offering available through the REDIPlus platform as an additional channel for our clients, furthering our own strategy of providing e-trading solutions across a range of electronic marketplaces.”

Chris Innes, Head of Equities for BNP Paribas Global Equities & Commodity Derivatives (GECD) in the Americas, said “We are delighted to have completed this investment which demonstrates BNP Paribas’ commitment to clients to ensure connectivity in the EMS space in the long term and our desire to focus on where our clients are headed.”

“REDI has established an exceptional reputation as a proven technology and financial services leader,” said Tom Miglis, Chief Information Officer of Citadel. “We are proud to be part of this strategic investment and look forward to working with REDI to further raise the bar in trading technology.”

“REDI is a leading brand in financial technology and is exceptionally well positioned to deliver the independent, high-quality services that market participants need,” said Donald B. Marron, Chairman of Lightyear Capital. “As the only private equity investor in the consortium, we’re excited about this investment, and we will leverage our broad experience in financial services to help guide REDI’s growth strategy and execute on value-creating strategic opportunities.”

Press release

www.goldmansachs.com

www.redi.com

Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. Other Voices: The role of diversification in CTA portfolios[more]

    2014 brought a resurgence of managed futures strategies, or CTAs, which performed very well as a whole, outperforming all other hedge fund strategies. However, a closer look reveals that there was a wide range of performance, or return dispersion, across managers. The bottom line? Not all CTAs

  4. Neuberger Berman unit buys 20% stake in activist hedge fund Jana Partners for $2bn[more]

    Komfie Manalo, Opalesque Asia: Neuberger Berman’s unit Dyal Capital Partners bought a 20% stake in activist hedge fund firm Jana Partners worth $2bn, WSJ.com reports. The deal comes as activi

  5. Hedge fund launches fall again, $1bn funds found to outperform even smaller hedge funds[more]

    Komfie Manalo, Opalesque Asia: The number of new hedge fund launches fell again in 2014, the third consecutive year of decline, while fund liquidations saw their first drop since 2010, according to the latest HFR Market Microstructure Industry Report released by industry data provider HFR. Acc

 

banner