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Goldman Sachs exits REDI to consortium including Lightyear Capital

17 Jul 2013

stock brokerage market share listedGoldman Sachs has sold a majority interest in financial technology company REDI to a consortium of investors, establishing it as an independent business.

The investment banking group said it would continue to hold a “significant” minority stake in the business, which has been bought into by private equity firm Lightyear Capital, Bank of America Merrill Lynch, Barclays, BNP Paribas, and Citadel.

Goldman’s global co-head of principal strategic investments, Darren Cohen, said, “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.

“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.”

Lightyear Capital chairman Donald Marron said, “REDI is a leading brand in financial technology and is exceptionally well positioned to deliver the independent, high-quality services that market participants need.

“As the only private equity investor in the consortium, we’re excited about this investment, and we will leverage our broad experience in financial services to help guide REDI’s growth strategy and execute on value-creating strategic opportunities.”

In May it emerged Lightyear Capital was the lead bidder for SunTrust Banks’ asset management business RidgeWorth Investments, which had also drawn interest from Crestview Partners and Thoma Bravo.

New York-based Lightyear, which is focused on the financial services sector, will likely pay $250m to $300m for the company, a Reuters source said.

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