FTV Capital provided $35 million in growth equity funding to Derivative Path, a capital markets financial technology and services company.
The investment is Derivative Path’s first outside institutional round and will be used to expand its product offerings and help accelerate the company’s growth with financial institutions, end users and buy-side clients using it’s interest rate derivatives and foreign exchange platform.
Derivative Path was launched in May 2013 by a founding team of capital markets sales, trading, technology, and market risk professionals that also provided the company’s initial funding. Beginning as a trading platform for regional banks, the company has added new capabilities to its platforms, including automated hedge accounting and comprehensive interest rate derivative product coverage, and expanded into new asset classes like FX. Derivative Path’s cloud-based trading technology, DerivativeEDGE, is a derivative trading platform that facilitates interest rate and FX hedge activity management.
“Seven years ago, we were very fortunate to be able to put together a team of founding principals who were experts in their respective disciplines, had a clear vision of where our industry was going and recognized the important role technology would play to help market participants manage their trading businesses,” Pradeep Bhatia, co-founder and co-CEO at Derivative Path, said. “Since then, we have continued to grow our team with professionals with deep expertise equipped to tackle and solve the problems our industry faces. Despite all we have accomplished in the last several years, this is just the beginning. This transaction with FTV Capital is validation that Derivative Path and its technology are poised to continue to grow market share and drive innovation in the industry. We look forward to partnering with FTV Capital to further support our clients and lead the market through product innovation.”
FTV partners with management teams, often as the first institutional investor, to help companies scale and drive growth.
“Financial institutions and corporates continue to increase their adoption of interest rate and FX derivatives to more effectively manage balance sheet and operational risks,” Robert Anderson, partner at FTV Capital, said. “Through a unique combination of expertise, technology and service, the seasoned team at Derivative Path continues to democratize the usage of derivatives for operational use cases, such as back-to-back lending, balance sheet hedging, supply-chain FX exposure and more. The company’s purpose-built technology platform combined with top-tier service has led to happy, successful customers and an impressive growth trajectory. We are proud to announce this partnership and look forward to supporting DPI’s next chapter of innovation.”
Alongside the investment, FTV Capital’s Anderson and Brent Fierro will join Derivative Path’s board of directors.
Derivative Path is a San Francisco Bay Area-based fintech company with additional offices in New York City and Chicago.
FTV Capital is a growth equity investment firm that has raised nearly $4 billion to invest in companies offering a range of solutions in enterprise technology and services, financial services, and payments and transaction processing.
