US-based private equity firm The Carlyle Group has agreed to take a majority holding in funds network Calastone for an undisclosed amount.
The sellers are Calastone’s existing shareholders, including venture capital investor Octopus Ventures and Accel.
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Octopus said that the disposal returned 18 times its initial investment in 2008 and nine times its total investment.
Titan has held the stake in Calastone since 2013 through Zenith Holding Company.
The deal will see Carlyle Group help Calastone in ramping up its growth including global expansion.
Commenting on Calastone, The Carlyle Group managing director in the advisory team Fernando Chueca said: “Since its inception, the company has achieved remarkable growth through replacing legacy and complex workflows with truly innovative solutions for its clients.
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By GlobalData“We are delighted to partner with Julien and the management team and look forward to leveraging our global platform, network of relationships, and deep expertise in Financial Services and Technology to support Calastone in its next phase of growth.”
Calastone’s management will continue to have a minority stake in the business, which provides automated order routing, settlement, dividend and transfer services to asset and fund managers. The deal awaits regulatory approval.
Set up in 2007, Calastone currently caters to more than 2,300 clients across 43 countries.
The firm introduced its Distributed Market Infrastructure (DMI) last year. DMI leverages distributed ledger technology to automate the fund transaction process.
This March, Singaporean robo-adviser StashAway turned to Calastone to automate investment funds processing. The digital investment firm utilised DMI to promote its services globally.
In May this year, JPMorgan Asset Management tapped Calastone to automate settlement for its money market funds.
Calastone CEO Julien Hammerson said: “Our business has grown from strength to strength and has created the Distributed Market Infrastructure (DMI), a hugely innovative and market leading DLT based platform to drive yet more efficiency.
“At the same time, we have continued to expand internationally and created new opportunities in Money Market funds.”
