Five Arrows Principal Investments to acquire an interest in Pirum
Five Arrows Principal Investments, the mid-market private equity fund backed by the Rothschild Group and Camwell Management LLP, have agreed to acquire an interest in Pirum, a provider of post-trade infrastructure technology for the securities finance industry, in a transaction served by Novitas Partners LLP as financial advisor to Pirum and its shareholders.
Pirum Systems Limited was founded in 2000 and over the last 15 years has delivered a comprehensive portfolio of post-trade services, enabling customers in the wholesale securities finance markets to electronically connect to both their counterparties and other market infrastructure providers. Pirum’s centralised hub is connected to the internal systems of over 100 market participants. More than 30 of these are connected to Pirum’s market-leading and innovative Real-Time services, with the organisation’s services used by both borrowers and lenders as a critical element of their post-trade processes for securities lending, repos and any associated collateral transactions.
Rupert Perry and Jeff Armstrong, the two co-founders of Pirum, will remain with Pirum and continue as shareholders in the company, while on completion of the acquisition that is pending regulatory approval, Donal Smith of Camwell will join Pirum’s board of directors as non-executive Chairman. "Pirum has an outstanding reputation in its marketplace. I believe the market opportunity for Pirum is compelling, creating exciting opportunities to develop services provided by its centralised processing hub," says Smith.
Rajen Sheth, CEO of Pirum states: “With the support of our new investors, Pirum will further cement its already unique position at the heart of the securities finance industry. I am personally very excited about the new possibilities to develop further innovative services to support our clients as they respond to ongoing regulatory changes and the need for improved capital efficiency, operational risk management and cost reduction.”
Javed Khan, Co-Managing Partner of Five Arrows Principal Investments, adds: “We greatly value businesses like Pirum which have products with mission-critical functionality and a proven track record of adding value to their customers in an increasingly complex regulatory environment. We have been highly impressed with the achievements of Rajen and his team, and look forward to working with them in the next phase of the Company's growth."