Capitolis, which develops tech for banks and financial institutions, raised $220M, including a $120M Series E at a $1.9B valuation, up from $1.6B in March 2022

Your financial institution's ability to optimize its capital and balance sheet improves as Capitolis integrates its new acquisition.

Capitolis, a fintech firm providing technology solutions for banks and financial institutions, has secured $220 million in new funding. This includes a $120 million Series E equity round, which values the company at $1.9 billion, an increase from its $1.6 billion valuation in March 2022. The round was co-led by existing investor Citi and new strategic investors Bank of America, Nomura, and Tradeweb Markets, with participation from other existing major financial institutions. The company also raised debt financing from lenders including First Citizens Innovation Banking. Capitolis plans to primarily use the new capital to support its recent acquisition of eSecLending, a securities lending provider, which is expected to add significant revenue and expand its platform capabilities in financial resource optimization.

The significant funding round, combining equity and debt, signals strong investor confidence in Capitolis' strategy and market position, particularly in enabling financial resource optimization for large institutions. The inclusion of major banks as both strategic equity investors and customers highlights a trend towards deeper partnerships between fintech providers and the traditional financial sector.

This capital injection, especially for the eSecLending acquisition, allows Capitolis to expand its offerings into securities lending and enhance its existing portfolio optimization platform. The move is expected to create a more comprehensive solution for financial institutions facing funding and balance sheet challenges, potentially influencing how banks manage and access capital markets going forward.