Derivative Path, a provider of capital markets technology and derivatives execution services to mid-sized US financial institutions, has acquired Monetics, a debt management platform servicing commercial real estate participants.
The transaction democratises access to capital markets by streamlining workflow between regional banks, credit unions, and the thousands of commercial clients they serve, while opening new revenue channels for the major Wall Street liquidity providers.
Derivative Path has been aggressively expanding its operations following a USD35 million Series B funding round in June 2020, led by FTV Capital. In 2021, it broadened its foreign exchange platform and commercial borrower outreach.
The Monetics technology enables users to digitise all aspects of their loan portfolios on one simple interface, eliminating hours of manual work referencing legal documents for the real estate industry’s 300,000 commercial loans, as well as tracking critical debt timelines. Monetics clients can now access the state-of-the-art Derivative Path platform to seamlessly monitor their interest rate exposure while taking advantage of a broader set of capital markets services. Likewise, Derivative Path’s existing 130 mid-sized financial clients (and their clients) can now manage debt as well as derivatives on the platform.
“We’re on a mission to deliver a unified capital markets experience to corporate America,” says Pradeep Bhatia, Co-CEO of Derivative Path and former head of rates sales for financial institutions at Wells Fargo. “Until now, commercial clients could not centrally manage their debt and financial products. Our innovative platform not only improves operational workflow for our clients but streamlines the support provided by Wall Street’s trading desks for potentially thousands of corporate borrowers.”
“The opportunity to join the Derivative Path team was compelling, as it addresses our clients’ needs for greater derivatives capabilities and broader capital markets accessibility,” says Adam Fischer, CEO of Monetics. “Not only does Derivative Path already provide the interest rate and FX hedging tools that are so vital to borrowers in the commercial market, but their vision for the democratisation of the capital markets encapsulates everything we stand for.”
Derivative Path’s SaaS-based capital markets platform, combined with its advisory support, is designed as a complete end-to-end solution in which users have front-, middle-, and back-office functionality on one platform, eliminating the inefficiencies of working with disparate systems to manage operational workflow. It also automates regulatory compliance, hedge accounting, integrates real-time market data, automates swap data reporting, and affirms cleared trades.
