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L Squared completes acquisition of Sterling Trading Tech

L Squared Capital Partners has acquired  of Chicago-based Sterling Trading Tech (STT) from LLR Partners and other investors, a SaaS provider of financial technology for the global capital markets. 

The investment represents L Squared’s fourth platform investment in Fund III, a USD505 million private equity fund that closed in September 2020. STT’s management also participated in the acquisition.

Sterling Trading Tech offers complete trading solutions to the professional and retail global capital markets. STT’s mission is to provide market-leading, cloud-based trading infrastructure, encompassing Trading Platforms, OMS, and Risk products to support both buy-side and sell-side firms. Clients include clearing firms, broker dealers, proprietary trading groups, and hedge funds in over 20 countries. In 2020, Sterling systems touched over 8 per cent of all traded US stock volume.

“L Squared is excited to begin our partnership with the STT team whom we have found to be passionate about customer service and developing innovative products such as its OMS and risk platforms,” says Sean Barrette, Partner at L Squared and STT Board Member. “The incremental resources our strategic investment provides will allow the team to capitalise on the accelerating adoption of cloud-based solutions and serve larger institutional customers.”

In partnership with L Squared, STT plans to make strategic growth investments in both its product development and sales organisations to drive global adoption of its OMS and risk solutions along with the execution of strategic acquisitions to add asset classes and geographies to its suite of products.

“We are thrilled to partner with L Squared, who shares our vision for the future including building best-in-class technology. L Squared’s expertise will help us accelerate our growth,” says Farid Naib, STT CEO and Board Member. “Our plan is to continue as a market leader while expanding our product suite and expanding into new markets and asset classes. We will maintain our commitment to innovation and unrivaled customer service for our clients.”

Raymond James advised STT and LLR Partners on the transaction and Faegre Drinker Biddle & Reath LLP served as legal counsel. Vedder Price served as legal counsel to L Squared Capital Partners. The L Squared deal team included Sean Barrette, Jeff Farrero, Edmund Montanari, and Jack Foley. Maxime Seguineau served as an operating advisor to L Squared and has joined the STT Board of Directors.

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