Quantile Technologies (Quantile), a leading provider of portfolio optimisation services for the global financial services market, today announced that it has received a $51 million (£38 million) minority investment from Spectrum Equity, a leading growth equity firm focused on Internet-enabled software and information services companies, according to a press release. The investment will accelerate the next phase of Quantile’s growth as it develops new services and expands into new markets to better serve its clients. Spectrum is the first institutional investor to back Quantile’s experienced founding team.
Quantile reduces risk in financial markets, delivering advanced strategies that rebalance and reduce counterparty risk between market participants, increasing the efficiency and liquidity of markets, improving returns for clients and making the financial system safer. Since launching in 2017, Quantile has eliminated trillions of dollars of gross notional of OTC derivatives through compression and billions of dollars in margin through its counterparty risk reduction service.
At the core of Quantile’s platform is a powerful optimisation engine providing advanced compression and risk rebalancing services to banks, hedge funds and other financial institutions engaging in OTC derivative transactions. Through Quantile’s services, clients can reduce counterparty risk and gross notional, release capital and improve returns. Quantile’s compression service has eliminated more than $230 trillion of gross notional to date and its optimisation service reduces billions of dollars of initial margin each month across asset classes.
Mike Farrell, Managing Director at Spectrum Equity, said, “Quantile’s risk management and optimisation technology has proven to deliver significant value for its clients. We are pleased to work alongside the Quantile team in the next phase of growth and see tremendous potential for the company to fundamentally transform the derivatives market as the adoption of sophisticated multilateral risk management techniques accelerate.”
Stephen O’Connor, co-founder and Chairman of Quantile, said “We are grateful that the major derivatives market participants have chosen to partner with us. As we look forward to the next phase of our growth, the new relationship with Spectrum will enable Quantile to work with those clients to drive further risk management innovation in the financial services industry.”
“Quantile is at the forefront of risk optimisation for derivative portfolios, enabling clients to not only rebalance and reduce risk, but also increase their competitiveness and operating efficiency. They are making the financial system safer, and we look forward to supporting Quantile’s mission-driven and product-led growth,” said Parag Khandelwal, Principal at Spectrum Equity.
Quantile, formed in 2015, was founded and is led by a team of industry experts with significant experience in risk management, quantitative analysis and trading technology. “We are committed to providing our clients with market-leading services to allow them to continuously optimise their derivative portfolios to maximise returns and to efficiently meet regulatory capital requirements” said Andrew Williams, co-founder and CEO of Quantile. “We are very pleased to partner with Spectrum Equity and leverage the team’s deep domain expertise in scaling FinTech and risk technology companies to further develop our industry leading solutions.”
In conjunction with Spectrum’s investment, Mike Farrell from Spectrum Equity will join Quantile’s Board of Directors. Financial terms of the transaction were not disclosed.
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