Capitolis to Acquire LMRKTS for Its Trade Compression Solutions

Capitolis has entered into an agreement to acquire LMRKTS, an industry-leading multilateral optimization and compression provider.

The deal, which is expected to close in August, will allow Capitolis to provide banks, asset managers, and hedge funds with the broadest and most complete trade compression solutions available in the market.

The SaaS-powered network links global market participants to new sources of capital in a regulatory-sound manner. It combines deep markets expertise with a Silicon Valley mindset.

The ever growing roster of clients has surpassed 100 global financial institutions that use the Capitolis platform to seek out opportunities to free up capital without taking on additional risk.

The LMRKTS team will join Capitolis, enhancing the depth of the company’s optimization talent and its ability to bring additional capabilities, including multilateral compression, to the market. Terms of the deal were not disclosed.

Gil Mandelzis, founder and CEO of Capitolis, said: “At Capitolis, we are well on our way to meeting our audacious goal of transforming capital markets, guided by the tremendous demand we continue to see from the world’s most significant providers of capital. With the addition of the fabulous capabilities Hilary, Sandeep, and the LMRKTS team have built, we will unlock even greater opportunities to expand our product suite and enhance our technology. Together we move one step closer to a transformed, safer, healthier, and more efficient market.”

Hilary Park, co-founder and CEO of LMRKTS, commented: “I am extremely proud of the company we have built at LMRKTS, and very thankful to our clients and the LMRKTS team whose support has made us a leading multilateral provider in foreign exchange.

“When Sandeep Karkera and I started LMRKTS together with Lucio Biase over eight years ago, demand for network-based optimization services was just starting to accelerate. We have since seen firsthand the far-reaching impact that Capitolis has had on the marketplace over the past four years and know that as one team we will deliver truly exceptional results for our clients. Capitolis shares our vision for the future of capital markets, and we’re proud to be joining forces with them.”

Itay Tuchman, Global Head of Foreign Exchange at Citi, said: “As a client of both Capitolis and LMRKTS, we are delighted to see them team up and look forward to working with the combined entity moving forward. Capitolis is bringing truly innovative solutions to capital markets, and we support the firm’s ambitious vision for the future.”

Capitolis has recently raised $90 million in a Series C funding round led by Andreessen Horowitz.

Capitolis helps financial institutions optimize their balance sheets, which creates a fairer, safer, and healthier marketplace.
Its financial resource optimization service is backed by Andreessen Horowitz, Index Ventures, Sequoia Capital, Spark Capital, SVB Capital, and S Capital.

Citi, J.P. Morgan, and State Street also back the New York headquartered hirm, which also has offices in London and Tel Aviv.

Over the past year, the firm appointed Stuart Wexler as General Counsel, Jimmy Reilly as Head of Equity and Total Return Swaps Funding Solutions, Jen Vanderwall as Chief People and Culture Officer, and James Kibbe as Head of Structured Funding Origination.