Interdealer ICAP, has announced that it is investing Enso Financial Management (EFM), an early stage firm that provides hedge funds and asset managers portfolio reporting and data analytics services. The strategic investment is through ICAP’s majority owned early-stage funding program Euclid Opportunities. For ICAP, the funding is part of their strategy of investing and partnering with firms that can provide complimentary services to their suite of products. Other recent investments using the Euclid Opportunities arm include OpenGamma and Model Two Zero.
Based in New York, EFM reports on more than $100 billion in global assets under management. EFM’s analytics products are aimed at offering buy-side managers “a backdrop for radically improved daily fund performance based on valuable, actionable insights that might otherwise remain hidden”. According to EFM, the firm will be using proceeds from the investment to “drive continued product innovation and expand geographically to support its growing client base”. They added that “demand for services has increased significantly as buy side firms using multiple prime brokers, custodians and swap dealers increasingly require flexible reporting and analytics platforms”.
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Commenting on the investment Mark Beeston, CEO of Portfolio Risk Services at ICAP said “EFM have clearly demonstrated their advanced portfolio analytics deliver the transparency and operational insight increasingly required by buy side participants. EFM’s technology is a strong fit for ICAP and will complement our suite of services to help our customers drive the efficiencies demanded in today’s trading environment.”
Michael Gentile, EFM partner added “ICAP has a strong track record in investing in and developing businesses, particularly those that enable its customers to reduce costs and risk. Our mutual recognition that investors can benefit from improved transparency, speed of execution and a more streamlined trading process makes this strategic alliance an important step for EFM as we grow our blue-chip clientele. We will benefit from working with ICAP improving further our technology development and operational efficiencies.”
ICAP added that Steve Gibson, Managing Director of Euclid Opportunities, will join the Board of EFM. Terms of the investment or other funding partners were not provided by ICAP or EFM.