Wed, Jul 29, 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. Bridgewater turns bearish on China[more]

    Komfie Manalo, Opalesque Asia: The world’s biggest hedge fund Bridgewater Associates and one of the most vocal of China’s potential is now turning its back against the world’s second largest economy as it joins a growing list of high-profile investors who are challenging China’s potentials.

  2. Launches - Ex-Brevan Howard star Rokos builds team for new fund, Former Och-Ziff manager’s firm starts health care hedge fund, Industry veterans launch commodity investment firm Aron Capital Management, Nikko Asset Management launches two UCITS funds, Capital Group plans to debut Asian investor targeted fund[more]

    Ex-Brevan Howard star Rokos builds team for new fund From WSJ.com: Chris Rokos, a former star trader at Brevan Howard Asset Management LLP, has hired an economist from Nomura to join the team he’s assembling for his much anticipated hedge fund launch. Mr. Rokos, whose firm is due to b

  3. Institutions - Pension fund dismisses Texas consultant, Rhode Island pension fund gets 2.2% investment return, far below assumed rate of 7.5%, New Jersey pension investments see a drop-off in returns[more]

    Pension fund dismisses Texas consultant From Sandiegouniontribute.com: The county retirement board on Thursday terminated the Texas consultant who was given the reins of the $10 billion pension fund, and whose investment picks left many employees and retirees feeling taken for a ride.

  4. SWFs - Sovereign wealth funds paid around $14 billion in fees[more]

    From SWFinstitute.org: When it comes to the financial sector, asset management is one of the most profitable industries in the world. The Boston Consulting Group put out a 2014 figure saying there is US$ 74 trillion worth of professionally-managed assets. One of the fastest growing institutional inv

  5. Investing - Carlyle teams with TCW in push for ordinary investors[more]

    From Bloomberg.com: Carlyle Group LP isn’t backing down from its goal of offering alternative strategies to the masses, despite early setbacks. The Washington-based firm is teaming up with TCW Group, which is majority owned by Carlyle funds, to offer three vehicles that give ordinary investors acces

 

banner