Why we invested
Bowmark saw that Pirum played a key role for financial institutions, which rely on its software to navigate the complex, lengthy and multi-party process of securities lending, where borrowers, lenders and lending agents interact. The company has enviable customer retention rates approaching 100%, with clients seeing the platform as “mission critical”. Bowmark led a buyout in April 2019, supporting CEO Rajen Sheth’s strategy to continue to grow and evolve the business.
Already the European market leader, Pirum was ready to break into new areas such as collateral management, asset servicing and the front office, including trade and collateral optimisation. Pirum could also tap into the compliance needs created by the Securities Finance Transaction Reporting (SFTR), Central Securities Depositories Regulation (CSDR) and Uncleared Margin Rules (UMR). Geographically, the USA represents 40% of the stock lending market and was an obvious destination for expansion. Furthermore, the asset classes of OTC derivatives and repo, with larger volumes than stock lending, were crying out for a high-quality post-trade solution.
Trades and collateral processed daily
The story so far
A strong relationship has developed between the Bowmark team and Pirum’s management. We supported Rajen in his move to President from CEO, enabling him to step away from the day-to-day running of the company while staying actively engaged with the business that he built. In August 2020, Commercial Director Phil Morgan, stepped up to the role of CEO, and the business has brought on a Financial Director, Chief Commercial Officer and Chief Technology Officer.
These changes have freed up the commercial division to focus more on customer acquisition and service. With Bowmark’s backing, Pirum has developed new products, including an SFTR solution, collateral management, corporate actions and front office services, and connectivity with the US Depository Trust and Clearing Corporation. A data reporting suite has also been implemented, allowing management to monitor performance indicators, including environmental and social governance standards.