Capstack Technologies Acquires Edge Tradeworks to Offer Whole Loans and Participation Trading on One Platform
17 Julio 2024 - 12:28PM
Business Wire
The combined platform allows financial
institutions of all sizes around the country to access liquidity by
trading whole loans and participations in one place for the first
time
Capstack Technologies Inc. (“Capstack”), the leading loan
trading platform for financial institutions, today announced the
acquisition of Edge Tradeworks Inc. (“Edge”), an
institutional-grade whole loan-trading and bank analytics platform.
Together, the two companies will offer a first-of-its-kind platform
that brings whole loan and loan participation trading to financial
institutions within a single investment ecosystem.
For financial institutions, diversification, risk mitigation,
and access to liquidity are more important than ever. By powering
both participation and whole loan trading on one platform, Capstack
and Edge have removed all constraints around size and transaction
type, providing customers with a marketplace of unlimited
opportunities to enhance liquidity and diversification. Capstack
now has the highest volume of buyers, sellers and transactions on
its platform, offering transparent collaboration and seamless
transactions between financial institutions.
"Nothing currently exists that brings both sides of this market
together, so we saw a huge opportunity to change that and enhance
liquidity for our customers,” said Capstack Founder and CEO, Michal
Cieplinski. “By bringing participation and whole loan trading under
one roof, we can provide significantly more liquidity and trading
volume for both sides of the market.”
Backed by top fintech investors and the world’s largest banks,
Capstack leads the way in powering transactions and collaboration
between financial institutions by offering a simple, secure and
efficient platform for trading participation loans. Edge has served
regional and national banks and non-bank financial institutions,
including credit funds and credit unions. Their platform uses data
analytics tools to allow customers to compare their loan portfolio
composition against other institutions and regulatory requirements
and then identify buyers and sellers to trade with.
With the acquisition, all types of financial institutions can
now access trading opportunities that they wouldn’t previously have
had access to. Edge was founded by John Roberts and Hughie Choe,
who will join the Capstack leadership team alongside CTO Alex
Dorsch. The combined platform already has several hundred million
dollars in transaction volume.
“Historically, financial institutions haven’t been able to
easily access the trading opportunities that best suit their
liquidity needs,” said Edge Co-Founder and CEO, John Roberts.
“Capstack offers customers an unparalleled level of liquidity and
ability to manage risk from within their loan portfolio, where the
bulk of the risk lies.”
In March 2024, Capstack announced a strategic investment from
Citi Ventures, the formation of a high-profile advisory board, and
the growth of its leadership team with the addition of David
McArdle as Head of Banking Relationships and Randy Riffle as Head
of Customer & Platform Operations. The acquisition of Edge is a
significant milestone for Capstack and reflects a new phase of
growth for the company.
“Capstack’s acquisition of Edge is a significant step forward
for capital markets liquidity and diversification,” said Logan
Allin, Founder and Managing Partner at Fin Capital. “A single
platform providing access to both of these critical loan and
deposit markets in one place, is a step function improvement to the
way that financial institutions of all sizes approach loan trading
and collaboration. The combination is a testament to how Michal and
the Capstack team are scaling technology that truly helps
institutions unlock new paradigms.”
About Capstack Technologies
Capstack Technologies is a leading loan trading and analytics
platform for financial institutions, enabling collaboration,
increased profitability and risk mitigation through asset
diversification and liquidity. Capstack Technologies is dedicated
to building a sophisticated infrastructure to redefine banking
operations, enhance risk management, and deliver cutting-edge
solutions for financial institutions. Capstack Technologies is
backed by world-class investors, including Citi Ventures, Fin
Capital, Alloy Labs, Cambrian Ventures, Cowboy Ventures, Future
Perfect Ventures, Gaingels, Selah Ventures, Uncorrelated Ventures
and Valor Equity Partners.
About Edge Tradeworks
Edge Tradeworks was founded in 2016 by John Roberts and Hughie
Choe to address the demand for a more efficient, transparent and
profitable way for financial institutions to trade whole loans. The
company’s robust technology offers dozens of metrics so financial
institutions can analyze their portfolios and trade whole loans
efficiently. Since inception, Edge has provided analytics to
hundreds of financial institutions and has seen millions of dollars
in loans traded on its platform.
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