Private equity firm Parthenon Capital Partners has acquired eSecLending, a securities lending agent.
Founded in 2000 to provide an alternative approach to securities lending, eSecLending is the largest independent securities lending agent. Clients include asset managers, pension funds, insurance companies and corporations, whose combined assets under management exceed USD2trn.
As part of the transaction, securities lending industry veteran Craig Starble will co-invest in eSecLending and join as the company’s chief executive officer. Starble was formerly an executive vice president and head of securities finance at State Street as well as chief executive officer of Premier Global Securities Lending.
Starble says: “I am thrilled to partner with Parthenon and eSecLending. The merits of a boutique, independent service provider have become increasingly evident in the current market environment where clients are seeking aligned interests and value-added, tailored solutions. I look forward to joining the team and collaborating with an innovative company to build upon and execute their strategy and goals.”
Chris Jaynes, eSecLending’s current co-chief executive officer and one of the founding members of the firm, will remain with the company as president, responsible for client management, strategy and business development.
“We are excited about the transaction as it further strengthens our business, preserves our independence and maintains continuity of our management team and key personnel,” says Jaynes. “In addition, we look forward to leveraging Craig’s leadership experience and perspective to further enhance our offering.”
Current co-chief executive officer Karen O’Connor had previously announced her plans to retire from the company, effective upon completion of the transaction.
Brian Golson (pictured), managing partner at Parthenon Capital Partners, says: “We are thrilled to partner with Craig and the eSecLending executive team to continue to grow the company. eSecLending is uniquely positioned to help beneficial owners maximize the risk adjusted return from their securities lending program through its unconflicted and differentiated business model.”
Financial Technology Partners and FTP Securities acted as strategic and financial advisor and Kirkland & Ellis acted as legal advisor to Parthenon in connection with the transaction.
