– UK, London – Quantile Technologies, a leading provider of portfolio optimization services for the global financial services market, today announced that it has received a $51 million minority investment from Spectrum Equity, a leading growth equity firm focused on Internet-enabled software and information services companies.
Concurrent with the financing, Mike Farrell from Spectrum Equity will join the Board of Directors.
Mike Farrell, Managing Director at Spectrum Equity, said, “Quantile’s risk management and optimization 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.”
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.
At the core of Quantile’s platform is a powerful optimization 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 optimization service reduces billions of dollars of initial margin each month across asset classes.
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 optimize their derivative portfolios to maximize 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.”
Quantile has a broad client base which includes the world’s largest banks and buy-side firms. Quantile’s advanced algorithms make it easy for clients to target and reduce certain risk characteristics, such as gross notional or initial margin requirements, without changing the overall risk profile or valuation of their portfolio. As more market participants adopt Quantile’s services, the optimization process becomes more efficient, creating strong network effects that benefit all participants.
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 optimization 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,” added Parag Khandelwal, Principal at Spectrum Equity.
About Quantile
Quantile reduces the 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. Clients include the G15 top-tier global banks, regional banks, and other large institutional market participants. Quantile is headquartered in London, with offices in New York.
For more information: https://www.quantile.com/
About Spectrum Equity
Spectrum Equity is a leading growth equity firm providing capital and strategic support to innovative companies in the information economy. For over 25 years, the firm has partnered with proven entrepreneurs and management teams to build long-term value in market-leading Internet-enabled software and information services companies. The firm is investing its ninth fund with $1.5 billion in capital. Representative investments include Ancestry, Bats Global Markets, Definitive Healthcare, Ethoca, GoodRx, Grubhub, Lynda.com, Origami Risk, RiskMetrics, SurveyMonkey, and Verafin.
For more information: https://www.spectrumequity.com/
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