Mon, Aug 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. Investing - Hedge funds suddenly find real money is back in Argentina's debt, Elon Musk buys more SolarCity stock following hedge fund manager short, BlackRock plans to get into rental-home financing[more]

    Hedge funds suddenly find real money is back in Argentina's debt From Bloomberg.com: The real money is back in Argentina. Before the country’s default in July 2014 (its second in 13 years), most long-term investors abandoned its bond market. As they rushed out, Argentina became a favorit

  2. Activist News - Carl Icahn has snapped up a huge stake in Freeport-McMoRan, and the stock is ripping, Meet Europe's best activist investor[more]

    Carl Icahn has snapped up a huge stake in Freeport-McMoRan, and the stock is ripping From Businessinsider.com: Carl Icahn has picked his next target: Freeport-McMoRan. Icahn and a group of other investors have snapped up an 8.46% stake in mining company Freeport-McMoRan, according to a j

  3. North America - Hedge fund manager Ray Dalio’s challenge to the Fed[more]

    From Newyorker.com: For some reason, Janet Yellen, the chair of the Federal Reserve, decided to skip this year’s annual Fed conference in Jackson Hole, where monetary policymakers from the United States and abroad get together with some prominent academics to discuss the big issues of the moment. Th

  4. Performance - Hedge funds set to bank millions by short selling during London share slump, The China market chaos has made this hedge fund its most money in 2 years, Odey hedge fund said to surge 9% betting against China, Hedge funds with long-held bearish views on China rack up profits, Hedge funds in U.S. seen curbing damage from August turbulence, Hedge funds collect on their predictions of a fall, How did managed futures do while the Dow was down 1000[more]

    Hedge funds set to bank millions by short selling during London share slump From TheGuardian.com: Hedge funds are set to bank tens of millions of pounds from the slump in share prices in London, having bet almost £18bn that the FTSE 100 would fall. The funds making the bets include Lansd

  5. Opalesque Exclusive: John C Head IV leaves alternative investment firm Gallery Capital, David Harrison joins as co-CIO[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: John C Head IV, former president and co-founder of Gallery Capital Management, an alternative inv

 

banner