Five Arrows follows $1.25bn fund close with sale of Pirum to Bowmark

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Rothschild unit Five Arrows Principal Investments has followed the $1.25bn final close of its third corporate PE fund by selling securities market infra tech business Pirum Systems to Bowmark Capital.

The company, which was founded in 2000, aims to provide a secure, centralised automation and connectivity hub for global securities finance transactions.

Pirum delivers its services over a fully hosted, multi-tenanted SaaS platform to more than 120 market participants, processing over $2trn of trades and collateral each day.

The deal is expected to be completed next month. Five Arrows bought into the business in early 2015.

Bowmark managing partner Julian Masters said, “Twelve years of uninterrupted revenue growth is a great testament to Pirum’s management team.

“Having known the company since 2011, we are delighted to be backing Rajen and his colleagues as they capitalise on the significant opportunities opened up by continued product innovation and regulatory change.

“We are also delighted to be working with Pirum’s chairman, Donal Smith, and its founder and non-executive director, Rupert Perry, both of whom will continue in their current roles.

“Previously, Donal was chief executive of Data Explorers when it was backed by Bowmark.”

Rothschild & Co hit a €1.25bn hard cap close for Five Arrows Principal Investments III earlier this week, following a strong year for the fund series in which the firm exited four investments, generating almost 5x multiple of invested capital in aggregate.

AltAssets revealed in January that Bowmark had shrugged off fears over the UK’s upcoming split from the European Union by racing to a £600m final close for its sixth flagship fund.

The firm took just 10 weeks to strike a final close for Bowmark Capital Partners VI, which finished 60 per cent larger than the firm’s £375m fifth fund closed in 2014.

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