Capitolis Raises 220 Million in Financing at 1.9 Billion Valuation for eSecLending Deal

On October 6, 2026, New York based financial technology company Capitolis announced the completion of $220 million of financing. The package comprised a $120 million Series E equity round at a $1.9 billion valuation plus debt. The equity round was led by Citi, an existing investor. The financing will support Capitolis acquisition of securities lending firm eSecLending for $200 million in cash. That acquisition was announced on September 29, 2026, and remains subject to regulatory approvals.

Capitolis was founded in 2017 and helps banks and financial institutions address funding, capital and balance sheet challenges. Its main business lines are Capital Marketplace and Portfolio Optimization. The company says it continues to build on rapid growth across both areas. It is backed by venture firms including 9Yards Capital, Andreessen Horowitz (a16z), Canapi Ventures, Index Ventures, S Capital, Sequoia Capital and Spark Capital, along with banks including Bank of America, Barclays, BNP Paribas, Citi, J.P. Morgan, Morgan Stanley, Nomura, Standard Chartered, State Street, Tradeweb Markets and UBS. It was named to Fortune America's Most Innovative Companies 2026.

eSecLending is an independent securities lending agent founded more than two decades ago. Over 26 years it has assembled a network that includes institutional investors as well as every major bank and prime broker. The firm works with pension funds, insurers and asset managers, arranging loans of their securities to major global banks. Capitolis said the addition of lending capabilities would sit alongside its existing solutions in resource optimization, repo and financing. eSecLending (Europe) Limited is not included in the transaction but will continue providing services to the acquired business.

The financing package mixes equity and debt. The $120 million Series E was led by Citi with participation from new strategic investors Bank of America, Nomura and Tradeweb Markets, as well as existing investors Barclays, BNP Paribas, J.P. Morgan, State Street and UBS. Additional existing and new financial investors also participated. Debt financing will be provided by First Citizens Innovation Banking (formerly Silicon Valley Bank), Hercules Capital and Pinegrove Venture Partners. FT Partners served as exclusive strategic and financial advisor to Capitolis, while WilmerHale served as legal advisor to Capitolis and Goodwin Procter advised the banks.

Key Facts

GlobeNewswire reported on October 6, 2026 that Capitolis completed $220 million of financing, including a $120 million Series E at a $1.9 billion valuation led by Citi, to support its eSecLending acquisition. The announcement said the equity financing was led by Citi, an existing investor, with new strategic investors Bank of America, Nomura and Tradeweb Markets, as well as existing investors Barclays, BNP Paribas, J.P. Morgan, State Street and UBS.

Finance Magnates reported on October 6, 2026 that the financing comprised a $120 million Series E round valuing Capitolis at $1.9 billion and approximately $100 million of debt. CEO Gil Mandelzis said most of the new capital would support the acquisition, although the company did not provide an exact allocation. Capitolis agreed on September 29 to acquire eSecLending from Parthenon Capital and the company's management for $200 million in cash. Parthenon will reinvest in Capitolis as part of the transaction.

Crowdfund Insider reported on October 2, 2026 that Capitolis agreed to purchase eSecLending in a $200 million all cash deal, adding securities lending to its platform and widening its reach among the world's largest asset owners. The deal is Capitolis fourth strategic acquisition in five years. eSecLending was advised by Berenson & Company, Raymond James, Troutman Pepper Locke and Debevoise & Plimpton. The transaction remains subject to customary conditions, including regulatory approvals and antitrust clearance.

Markets Media reported on October 6, 2026 that the equity financing was led by Citi with participation from new strategic investors Bank of America, Nomura and Tradeweb Markets, as well as existing investors Barclays, BNP Paribas, J.P. Morgan, State Street and UBS. Siris Singh, Global Head of Markets Strategic Investments at Citi, said the transaction reflects Citi continued focus on investing selectively in businesses shaping the infrastructure and evolution of global capital markets. Serene Murphy, Global Head of Corporate Development at Tradeweb, said securities lending represents the next frontier in the electronification seen across markets and that the eSecLending acquisition will be an important step in that evolution.

The new valuation is approximately 19% above the $1.6 billion assigned to Capitolis in its 2022 Series D round, although differences in terms and investor rights limit a direct comparison. Capitolis is also pursuing a planned $46 million acquisition of Capitalab from BGC Group, adding technology for compressing interest rate derivatives and optimizing margin requirements.

Analysis

What this really means is that a group of the world's largest banks and market infrastructure firms is placing a strategic bet on the next phase of electronification in securities lending. The equity round is not simply growth capital for a standalone fintech. It is a coordinated move by Citi, Bank of America, Nomura, Tradeweb Markets, Barclays, BNP Paribas, J.P. Morgan, State Street and UBS to support a platform that sits between them and institutional asset owners. When banks that compete fiercely in trading and prime brokerage invest side by side, the signal is about market structure rather than a single company.

The bigger picture here is consolidation and industrialization of a market that has historically relied on manual processes. Securities lending involves matching asset owners who want incremental revenue with banks and prime brokers that need securities to cover positions. eSecLending has spent 26 years building relationships across pension funds, insurers and asset managers, and its network includes every major bank and prime broker. Capitolis brings technology that helps institutions optimize capital, funding and balance sheet usage. Combining the two creates a platform that can automate sourcing, allocation and collateral management at a scale that neither firm could easily reach alone.

The financing structure also deserves attention. Capitolis raised $120 million of equity at a $1.9 billion valuation and about $100 million of debt. Using debt alongside equity to fund an acquisition is common in mature fintech businesses with recurring revenue, but it also introduces leverage. The company has not disclosed an exact allocation of the new capital, and CEO Gil Mandelzis said most of it would support the acquisition. The $200 million all cash price means Capitolis needs the financing to close. eSecLending (Europe) Limited is excluded from the sale, which adds operational complexity but keeps a regulated European entity outside the acquired perimeter.

The 19% step up from the 2022 Series D valuation is meaningful but not extravagant in a market where fintech valuations have swung sharply. Finance Magnates noted that differences in terms and investor rights limit a direct comparison. The presence of Parthenon Capital as a seller that will reinvest in Capitolis also aligns the private equity firm with the combined company's success and reduces the risk of a purely financial exit. Capitolis has now announced its fourth strategic acquisition in five years, and the planned $46 million Capitalab purchase from BGC Group shows management is assembling a broader financial resource optimization suite rather than chasing a single product.

Why It Matters

For pension funds, insurers and asset managers, the deal could change how securities lending is accessed and priced. eSecLending clients gain a partner with deeper technology and a broader set of capital markets relationships. If Capitolis can bring more automation and efficiency to a market that has historically relied on manual processes, asset owners may see better reporting, faster allocation and more transparent collateral management. That matters because securities lending is a meaningful source of incremental revenue for long term investors, and operational friction has long limited participation.

For banks and prime brokers, the transaction reinforces the idea that balance sheet optimization is a strategic priority. Capitolis Capital Marketplace and Portfolio Optimization businesses already help institutions manage funding, capital and balance sheet constraints. Adding securities lending creates a more complete offering that spans repo, financing, resource optimization and collateral. The banks that invested in the Series E are also customers and partners, which gives Capitolis a distribution advantage but also means its fate is tied to the health of the same institutions it serves.

For the broader fintech funding market, the round is a reminder that strategic investors can still write large checks when a company sits at the center of market infrastructure. Citi led the equity financing, and new strategic investors Bank of America, Nomura and Tradeweb Markets joined. Debt providers First Citizens Innovation Banking (formerly Silicon Valley Bank), Hercules Capital and Pinegrove Venture Partners added about $100 million. The mix of bank, market infrastructure and venture backing suggests that capital markets fintech remains attractive when the product addresses regulatory, capital and operational pressures rather than consumer growth.

Next Up

Capitolis must now complete the eSecLending acquisition, which remains subject to customary conditions, including regulatory approvals and antitrust clearance. Parthenon Capital will reinvest in Capitolis as part of the transaction, and eSecLending (Europe) Limited will continue providing services to the acquired business. Integration will be the first test of whether the combined platform can deliver the automation and efficiency that Tradeweb Serene Murphy described as the next frontier. Capitolis will also need to show that its Capital Marketplace and Portfolio Optimization businesses continue to grow rapidly while it absorbs a 26 year old securities lending franchise.

The planned $46 million acquisition of Capitalab from BGC Group remains another moving part. If completed, it would add technology for compressing interest rate derivatives and optimizing margin requirements. Together with eSecLending, that would give Capitolis a wider set of tools for financial resource optimization across securities lending, derivatives and margin. The company says it continues to build on rapid growth across its Capital Marketplace and Portfolio Optimization businesses, and the next phase will be judged on client adoption, revenue growth and whether the bank backed model can deliver results beyond the headline financing.