Five Arrows Principal Investments and Camwell Management have agreed to acquire an interest in post-trade provider Pirum Systems for an undisclosed sum.
Rupert Perry and Jeff Armstrong, the co-founders of Pirum, will remain with the company and continue as shareholders. The proposed transaction remains subject to regulatory approval.
Rajen Sheth, previously managing director, will lead Pirum as CEO.
Upon completion of the deal, Donal Smith of Camwell will join Pirum’s board of directors as non-executive chairman.
Smith is a co-founder of Credit Benchmark and was previously CEO of Data Explorers, Thomson Financial (Europe and Asia) and FT.com.
Smith said: "Pirum has an outstanding reputation in its marketplace. I believe the market opportunity for Pirum is compelling, creating exciting opportunities to develop services provided by its centralised processing hub."
Sheth added: “With the support of our new investors, Pirum will further cement its already unique position at the heart of the securities finance industry.”
“I am personally very excited about the new possibilities to develop further innovative services to support our clients as they respond to ongoing regulatory changes and the need for improved capital efficiency, operational risk management and cost reduction.”
Five Arrows co-managing partner Javed Khan added: “We greatly value businesses like Pirum which have products with mission-critical functionality and a proven track record of adding value to their customers in an increasingly complex regulatory environment.”
“We have been highly impressed with the achievements of Sheth and his team, and look forward to working with them in the next phase of the company's growth."
Founded in 2000, Pirum delivers a portfolio of post-trade services enabling customers in the wholesale securities finance markets to electronically connect to both their counterparties and other market infrastructure providers.
Pirum’s centralised hub is connected to the internal systems of more than 100 market participants.
