FINCAD, a Vancouver-based provider of enterprise solutions for derivative and fixed income portfolios, has raised about $16 million (US$12 million) in financing.
The deal was led by Canadian technology growth capital firm Vistara Capital Partners, with a senior bank facility provided by CIBC Innovation Banking, the technology lending arm of CIBC.
Vistara Managing Partner Randy Garg will become a board observer.
FINCAD, led by President and CEO Bob Park, will use the funds raised to grow its F3 enterprise analytics platform, which supports modelling, pricing, valuation and risk management of portfolios in all asset classes.
FINCAD Secures Financing to Support F3 Enterprise Software’s Rapid Growth
Vancouver, BC, April 11, 2019 – FINCAD, the leading provider of enterprise solutions for derivative and fixed income portfolios today announced it has secured US$12 million of financing to support the rapid growth of its advanced F3 enterprise analytics solutions business.
The growth financing was led by Vistara Capital Partners and accentuated with a senior bank facility from the CIBC Innovation Banking team.
FINCAD’s award winning F3 enterprise analytics platform is an advanced solution providing industrial strength support for modeling, pricing, valuation, and risk management of portfolios in all asset classes. It offers the built-in functionality and ease-of-use of off-the-shelf software, combined with unlimited flexibility to customize to a firm’s specific trading strategy, workflow and reporting requirements. It also integrates seamlessly with existing systems and data sources.
“We realized the available solutions on the market could not offer the flexibility needed to cope with today’s wide range of new regulations, risk management challenges and market changes like the impending phaseout of the Libor benchmark rate,” said FINCAD president and CEO, Bob Park. “So, we set out to create a future-proof platform that could enable asset managers, hedge funds, insurance companies, pension funds, banks and others to overcome these challenges. In fact, one reason why F3 is so ground-breaking is that it offers infinite flexibility for users to easily extend the solution with new models, methods or instrument coverage as needed, but within a controlled environment,” he added.
This builds on two years of strong sales growth as FINCAD is seeing growing demand across both the buy side and sell side for valuation and risk solutions that are transparent and flexible. “I am pleased to say that over the past two years, our F3 bookings have doubled. These funds allow us to accelerate the execution of our strategic plan to grow our enterprise solutions business, while continuing to support the analytic needs and the success of our hundreds of existing clients,” Bob remarked.
This financing continues the successful relationships FINCAD has enjoyed over the past several years with both the leadership of Vistara Capital Partners and CIBC’s Innovation Banking team and provides a significant injection of capital to finance the rapid growth of FINCAD’s enterprise business.
“I have had a relationship with FINCAD’s leadership team for almost a decade and during that time, have tracked the evolution of F3 enterprise technology from invention to its commercial maturity. FINCAD is the kind of globally successful company that Vistara is enthusiastic about supporting,” said Randy Garg, Founder and Managing Partner of Vistara Capital Partners, who will also become an Observer on FINCAD’s Board of Directors.
Joe Timlin, Managing Director at CIBC Innovation Banking added, “We are very proud of our longstanding relationship with FINCAD and are pleased to be able to continue to support the company in its next phase of growth. We look forward to working with the company’s management team and board of directors to help FINCAD achieve its goals for the future.”
FINCAD is the leading provider of valuation and risk solutions for derivative and fixed income portfolios. An industry standard since 1990, our advanced analytics, flexible architecture and patented technology enable better investment and risk management decisions. We are committed to helping our clients solve their toughest challenges, without compromise. Clients include leading global asset managers, hedge funds, insurance companies, pension funds, banks and auditors. For more information, visit www.fincad.com.
About Vistara Capital Partners
Headquartered in Vancouver, BC, Vistara Capital Partners provides highly flexible and tailored technology growth capital solutions for companies across North America. Founded, managed, and funded by seasoned technology finance and operating executives, “Vistara” (Sanskrit for “expansion”) is focused on enabling the growth and expansion of its portfolio companies. Additional information is available at www.vistaracapital.com.
About CIBC Innovation Banking
With offices in Denver, Menlo Park, Montreal, Reston, Toronto and Vancouver, CIBC Innovation Banking is a full-service business that delivers strategic advice and funding to North American technology and life science clients at each stage of their business cycle, from start up to IPO and beyond. CIBC Innovation Banking brings extensive experience and a strong, collaborative team that extends across commercial banking and capital markets in Canada and the U.S.