BOSTON - Parthenon Capital ("Parthenon") announced today that it has agreed to sell its portfolio company eSecLending ("eSecLending" or the "Company"), a global securities lending agent serving institutional investors, to Capitolis, a financial technology company that provides financial resource optimization solutions to banks and the buyside, in a transaction valued at $200 million. The transaction is subject to customary closing conditions, including required regulatory approvals and antitrust clearance.

Founded in 2000, eSecLending provides customized securities lending, auction and collateral management solutions to institutional investors worldwide. Its clients include pension funds, insurance companies and asset managers, and it works with major banks and prime brokers. Over its 26-year history, the Company has built an extensive network of institutional relationships and service providers.

Parthenon invested in eSecLending alongside securities lending industry veteran Craig Starble, who joined the Company as Chief Executive Officer at the time of the investment. During the 13-year partnership, Parthenon and management supported the Company's market leading strategy to optimize lending program returns, institutional relationships, team and infrastructure. During Parthenon's ownership, eSecLending added important marquee clients and grew aggregate client on-loan balances more than six-fold.

Following closing, eSecLending will continue serving clients with its existing leadership team, employees and service model, led by Starble. Clients will continue to work with the eSecLending team and maintain their existing relationships as the business becomes part of Capitolis. The combined company will preserve the service model that has defined eSecLending.

"We partnered with Craig Starble to acquire eSecLending because of his deep securities lending experience and clear vision for the business," said Zach Sadek, senior partner at Parthenon Capital. "Craig and his team built eSecLending into one of the most respected independent platforms in securities finance. We are immensely proud of what they accomplished during our partnership and confident that Capitolis is the right home for the company."

"On behalf of everyone at Parthenon, I want to thank the eSecLending team," said Brian Golson, managing partner and co-CEO of Parthenon Capital. "What's stood out most is the consistency of focus on client outcomes. A 13-year partnership with one company is unusual in private equity. It was that consistent, steady growth that fostered a unique and highly lucrative partnership for Parthenon and our investors."

"Parthenon's partnership gave us the resources, patience and industry perspective to build eSecLending the right way, without compromising the independence and client focus that have always been the bedrock of our company," said Craig Starble, Chief Executive Officer of eSecLending. "We are grateful for Parthenon's support over the past 13 years, and we are excited for what comes next for our clients and our team as part of Capitolis."

In connection with the transaction, Parthenon Capital's Fund IV is making a rollover investment in Capitolis.

Berenson & Company and Raymond James served as financial advisors, and Troutman Pepper Locke LLP served as legal advisor to eSecLending in connection with this transaction.

FT Partners served as the exclusive strategic and financial advisor, and WilmerHale served as legal advisor to Capitolis on this transaction.

eSecLending (Europe) Limited is not included in the transaction but will continue to provide services to eSecLending.

ABOUT PARTHENON CAPITAL

Parthenon Capital is a leading mid-market private equity firm with offices in Boston, San Francisco and Austin. Parthenon utilizes niche industry expertise and a deep execution team to invest in growth companies in service and technology industries. Parthenon seeks to be an active and aligned partner to management, either through recapitalization transactions or by backing new executives. Parthenon has particular expertise in financial and insurance services, healthcare and business services, but seeks any service, technology or delivery business with a strong value proposition and proprietary know-how. For more information, visit https://www.parthenoncapital.com.

ABOUT eSecLending

eSecLending is an independent global securities financing business providing customized securities lending and collateral management solutions for institutional investors worldwide. The Company works with many of the world's largest asset owners, including pension funds, insurance companies, asset managers and other institutional investors, helping them optimize securities lending strategies, manage collateral and access securities financing markets. With a 26-year history in securities financing, eSecLending has built an extensive network of institutional investor relationships and a robust global ecosystem that includes major banks and prime brokers. For more information, visit https://www.eseclending.com.