Tuesday 29 September 2015 8:06 am

Euromoney takes 10 per cent stake in Zanbato

Euromoney has taken a 10 per cent stake in private capital placements platform Zabato for $5.5m (£3.6m).

The California-based business, founded by Silicon Valley entrepreneur Joe Lonsdale, is designed to "address inefficiencies in private capital markets". It operates a number of different divisions including a private label platform and a marketplace.

Today's investment follows a joint venture agreement struck earlier this year between Zanbato and Euromoney's Institutional Investor division to serve the institutional segment of the private placements market.

"Euromoney's investment strengthens this strategic partnership by providing Zanbato with the financial resources to accelerate its product and business development plans," the firm said this morning.

Euromoney chairman Richard Ensor said: "Over 45 years, Euromoney has built a wealth of trusted relationships with the buy-side and sell-side of the global asset management and capital markets sectors, which we are now using to create specialist digital communities.

"Our partnership with Zanbato will enable our Institutional Investor division to expand further its digital revenue streams by tapping into the fast-growing online private placement market. Over the next five years, this sector has the potential to create a significant opportunity for placement platforms. With its advanced SaaS technology, Zanbato is well placed to take an important share of this market."

Lonsdale said: "Innovation in finance is critical to advance modern society – technologies that make the global financial system more effective and efficient ultimately benefit all of us. Leaps in progress are often made by applying new ideas to the reach and impact of established players.

"We have a great respect for the platform Euromoney Institutional Investor has built, and believe our partnership will be formidable as each company brings unique and necessary ingredients required to transform private capital markets. I'm proud to see the innovation behind Zanbato having an increasing impact."