ICAP plc (IAP.L), a leading markets operator and provider of post trade risk mitigation and information services, announces today that it has acquired ENSO Financial Analytics (ENSO), a leading provider of a data analytics platform for hedge funds and prime brokers. 

The acquisition has been led by Euclid Opportunities, ICAP’s early-stage fintech investment incubator, founded by Steve Gibson in 2011. Euclid made its first investment in ENSO in June 2013, which was followed by a subsequent investment in October 2014 to enable further growth of the business.

ENSO will become a subsidiary of ICAP’s Post Trade Risk and Information (PTRI) division. ENSO founders Matthew Bernard, Michael Gentile, and Dwaine Alleyne will continue in their leadership positions with ENSO and will report to Jenny Knott, CEO PTRI.

ENSO provides powerful portfolio analytics to the hedge fund and asset management industry. ENSO’s team of prime brokerage, asset management, technology and data specialists deliver identifiable and measurable operational insight on counterparty credit risk, collateral management, and portfolio financing and treasury functions. With more than $1 trillion in total assets under advisory, ENSO provides operational insights and key analytics to many of the world’s most successful fund managers.

Through Euclid Opportunities, ICAP has made a number of early-stage financial technology investments and continues to grow its portfolio, identifying emerging companies with new platforms, business models and technologies that have the potential to drive efficiency, transparency and scale across the post-transaction lifecycle.

Since launch, Euclid Opportunities has invested in: Duco, a now global provider of data control services; OpenGamma, an award winning risk analytics platform; AcadiaSoft, an industry collaboration to automate collateral management; Abide Financial, a market-leading global regulatory reporting specialist; and Digital Asset Holdings, a developer of Distributed Ledger Technology.

Michael Spencer, Group Chief Executive Officer, ICAP, said:

“We have been and continue to be impressed by ENSO, who have demonstrated the ability to build a hedge fund client base to which they have delivered an expanding and well-regarded product set. The acquisition of ENSO demonstrates the Euclid model perfectly and follows an initial investment from ICAP in 2013. I welcome the ENSO team to the ICAP Group of companies. They will benefit from our networks, our years of experience and our expertise in the markets we serve. Together, we will have the opportunity to take the business to the next stage of its growth.”

Jenny Knott, Chief Executive Officer, Post Trade Risk and Information, commented:

“Our clients are seeking solutions to the structural trends of regulation, electronification and standardisation that are driving change throughout the industry. We feel ENSO perfectly complements our existing post trade client offerings and we are very excited about the synergies and many opportunities we see to expand our products and analytics services to the hedge fund and the buy side community.”

Matthew Bernard, Co-Founder of ENSO, said:

“In today’s rapidly changing financial and regulatory environment, the treasury and portfolio financing functions within a hedge fund become paramount roles. ICAP’s initial investments helped us expand in the US and UK, while continuing to invest in new product generation. Being part of the ICAP platform will propel our expansion and innovation strategy even further.”

 Michael Gentile, Co-Founder of ENSO, added:

“ICAP has supported ENSO from the beginning. They continue to encourage us to innovate and execute on products that deliver value to our clients and for the market. ICAP’s culture and vision are tremendously aligned with our own, and we look forward to the vast realm of possibilities that lie ahead.”