Electronic bond-trading startup TruMid Financial LLC, backed by George Soros and Peter Thiel, reached a definitive agreement to acquire Electronifie, another trading startup led by former Goldman Sachs trader Amar Kuchinad and focused on improving the liquidity for bigger corporate bond trades.
The two start-ups launched in 2015 focusing primarily on modernising and improving the old-fashioned corporate bond trading system, with TruMid and Electronifie each offering different approaches to reshape how corporate bonds trade. Investors have for years complained that bonds are too hard to trade, given that deals have historically been struck over the phone between dealer banks and their clients
Upon closing the deal, over 350 unique users will be added to TruMid’s Market Center, the company’s all-to-all trading network for corporate bonds, who in aggregate have traded nearly $5 billion of bonds in the past 6 months. This includes 20 of the top 25 asset managers in the world and 60 broker-dealers.
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TruMid announced recently the closing of the majority of a $28 million funding round led by Peter Thiel, who is joined by Soros Fund Management and Shumway Capital. The New York-based company is a FINRA-approved broker dealer and SEC registered ATS operator of an electronic trading platform for round lots of corporate bonds and CDS.
The backing of two of the most prominent investors in technology and finance will give a boost to Electronifie at a time when many of new bond-trading platforms face an uphill battle to transform the U.S. corporate-debt market.
Mike Sobel, President of Trumid, commented: “We pride ourselves on building a strong user network and delivering great products that make corporate bond trading easier. Trumid continuously strives to improve all aspects of our clients’ trading experience. The Electonifie team shares that vision and the combination of our networks will enhance the all-to-all liquidity available on the Trumid platform.”