Israeli Unicorn Capitolis Purchases Capitalab for $46 Million to Strengthen Rates Portfolio Optimization Technology

Capitolis, an Israeli fintech startup and a unicorn, Capitalab, a leader in Rates Portfolio Compression and Margin Optimization, from BGC Group for a purchase amount of $46 million. Rates Portfolio Compression and Margin Optimization are strategies employed by financial institutions to reduce the complexity and cost of their interest rate derivative portfolios.

Capitolis’ acquisition of Capitalab is a game-changer. By combining Capitalab’s deep domain expertise in rates portfolio compression and margin optimization with Capitolis’ growing network, the combined entity is poised to revolutionize the financial industry. This strategic move will enable both companies to accelerate innovation and deliver greater value to their clients.

Founded in 2015, CAPITALAB provides solutions to users of OTC Derivatives (investment banks, hedge funds, and other financial institutions.) CAPITALAB focuses on optimizing portfolios and risks to help reduce capital requirements and the credit & operational risks involved in running market activities.

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Founded in 2017 by CEO Gil Mandelzis, Tom Glocer, and Igor Teleshevsky, Capitolis has an SaaS platform that drives financial resource optimization for capital markets. Through collaborative technology, Capitolis helps clients eliminate unnecessary positions and find the most suitable party to hold the remaining positions – freeing up capital and removing barriers that would otherwise restrict trading. To date, Capitolis has eliminated trillions of dollars in overall positions for more than 100 financial institutions, including many of the top global and regional banks and leading buy-side firms.

Capitolis—which combines deep markets expertise with a Silicon Valley mindset—arms banks, asset managers and hedge funds across the market ecosystem with an innovative technology platform that allows them to free up capital and safely remove barriers that would otherwise restrict growth.

“We are thrilled to join forces with Capitolis, which will allow us to combine our strengths, talents and shared vision to create something even more remarkable,” said Gavin Jackson, Founder and CEO of Capitalab. “This powerful combination will enable us to deliver an even more exceptional service to our clients, ensuring their needs remain at the heart of everything we do.”

“Portfolio compression and margin optimization are extremely important to the capital markets and, when properly executed, truly help the financial system and its participants,” said Gil Mandelzis, CEO and Founder of Capitolis. “Capitalab’s highly innovative technology complements our existing suite of award-winning solutions and together we will create a ‘one-stop shop’ for compression. We look forward to welcoming the team and believe that together we can take their unique offering to the next level.”