The Goldman Sachs Group has sold a majority equity interest in REDI, the technology provider for the REDIPlus Execution Management System (EMS), to a consortium of investors including BofA Merrill Lynch, Barclays, BNP Paribas, Citadel and Lightyear Capital.
Goldman Sachs is retaining a significant minority equity stake in the company.
This transaction establishes REDI as an independent financial technology company. The consortium of investors enhances REDI’s business by providing a broad range of benefits to the marketplace through an expanded broker network, broad cross-asset capabilities, expansive global coverage and industry-leading customer service. In addition, REDI will leverage the valuable strengths of its partners to deliver broker-neutral solutions that span across the trade lifecycle, enrich the client experience and bring added value to customers.
“We are pleased to assemble an impressive consortium of market-leading participants to support the further growth of the REDI business and expand its reach to more clients, geographies and asset classes,” says Darren Cohen, global co-head of principal strategic investments at Goldman Sachs. “The new independent REDI is a strategic initiative for Goldman Sachs and the firm is committed to its future success as a separate, multi-dealer platform.”
REDI’s new headquarters are located in New York City, supported by five regional offices in Boston, San Francisco, Chicago, London and Hong Kong. The core product, technology, sales and support teams associated with the REDI business will continue to manage and invest in the platform under the new ownership structure. Rishi Nangalia, who previously co-managed the Goldman Sachs electronic trading business development group, will serve as the company’s chief executive officer.
“Our team understands the needs of the investment community and remains passionate about delivering technology solutions that will drive the industry forward,” says Nangalia. “Our clients are at the core of everything we do and we look forward to continuing to develop our community of investors, brokers and content providers.”
Representatives from each of the investor firms will join the REDI board.
“BofA Merrill Lynch is excited to be a strategic partner with REDI and merge our own EMS technology onto a global platform with proven capabilities across multiple asset classes,” says Bina Kalola, head of global equities strategic direct investments at BofA Merrill Lynch.