Citi, Deutsche Bank, and European exchange operator Deutsche Börse have participated in a $15 million funding round as primary investors in collateral management services provider CloudMargin.
The cloud-based services vendor said it plans to use the funds to further enhance its platform and technological capability, as well as expand its footprint in the US and Asia with additional sales and client services resources.
The funding round was the largest CloudMargin has received since its launch in 2014, and both Deutsche Bank and Citi are already existing clients of the firm.
“CloudMargin is a key partner for Deutsche Bank’s collateral management division, and we have been working closely together since we established our partnership in 2018,” said Joseph Macdonald, director of fixed income and currencies trading at Deutsche Bank. “Our investment reflects our confidence in CloudMargin’s world-class platform and its future within the industry.”
In total, CloudMargin confirmed it has raised $35 million through equity issuance since 2014 with additional investors including IHS Markit, Jefferies, and Illuminate Financial.
“We appreciated CloudMargin’s commitment to delivering a collateral and margin management solution in such an agile manner,” said head of custody and fund services at Citi, Sanjiv Sawhney. “Having adopted the CloudMargin platform in 2018 to support the provision of efficient outsourcing services for our clients, we have been impressed by the technology and chose to invest in the company.”
Deutsche Börse added that CloudMargin is an investment opportunity for its post-trade services provider Clearstream.
“Its innovative and agile technology brings crucial momentum to all players in the collateral management industry, from the largest investment banks to small and medium-sized buy-side institutions,” said Tilman Fechter, head of banking, funding & financing at Clearstream, part of the Deutsche Börse group. “Joining forces between established trusted players and a flexible start-up like CloudMargin is essential to future-proof the business for all market participants.”