The Carlyle Group said on Monday it had agreed to buy a majority stake in funds network Calastone from its current owners including venture capital investor Octopus Ventures and Accel for an undisclosed sum.
Carlyle said the deal, for an unspecified stake in the company, remained subject to regulatory approval.
In a separate statement, Octopus said its investment in Calastone, which provides automated order routing, settlement, dividend and transfer services to asset and fund managers, had returned nine times its total investment.
Carlyle – which is headquartered in Washington DC – manages investment vehicles that invest across various sectors. It was the world’s second-largest private equity firm in 2020 by capital raised after Blackstone.
Calastone has grown to be the largest funds network since it was founded in 2007. It offers automated order routing, settlement, dividend and transfer services to asset and fund managers.
Carlyle said that funds associated with it will support Calastone in “accelerating its growth”. It said that includes “broadening its market-leading product suite as well as the applications of its technology, and international expansion”.
Calastone chief executive Julien Hammerson, said: “We have made great strides in the past decade to meet the needs of our customers and their investors in reducing friction and costs within the mutual fund industry.”
He added: “There is huge potential for growth based on the technology platform and unique service offering we have created.
“We are delighted to have the full support of The Carlyle Group to capitalise on this opportunity and take the company forward into the next phase of its development and growth.”
Fernando Chueca of The Carlyle Group said: “We are delighted to partner with Julien and the management team and look forward to leveraging our global platform, network of relationships, and deep expertise in financial services and technology to support Calastone in its next phase of growth.”
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