Calastone acquired by US private equity firm Carlyle Group
US private equity firm, The Carlyle Group Global, is acquiring funds and settlement network Calastone.
The group takes a majority stake in Calastone, buying up shares owned by Octopus Group and Accel. Calastone’s management will retain a minority stake.
Calastone claims to be the world’s largest global funds network. It serves over 2,300 clients in 43 countries, processing £200 billion of investment value each month.
Financial details of the transaction are not disclosed, but cash from the deal is going towards the acceleration of Calastone’s growth. This includes “broadening” its product suite and international expansion.
“We have made great strides in the past decade to meet the needs of our customers and their investors,” says Calastone chief executive officer, Julien Hammerson.
“Everyone at Calastone has much to be proud of and there is huge potential for growth based on the technology platform and unique service offering we have created.”
Hammerson heaps praise on Calastone’s Distributed Market Infrastructure (DMI) platform. The system enables “full automation and digitalisation of the fund transaction process” using blockchain technology.
The Calastone CEO says it is “a hugely innovative and market leading […] platform to drive yet more efficiency.”
Fernando Chueca, managing director at The Carlyle Group, says Calastone has achieved “remarkable growth” through replacing legacy technology for clients.
He adds: “Calastone is a global leader and innovator in the funds technology industry, a large and growing market.
“We are delighted to partner with Julien and the management team and look forward [to supporting] Calastone in its next phase of growth.”
The transaction is subject to all the usual regulatory approvals.