Boston and Menlo Park, California-based Spectrum Equity Investors has agreed to recapitalise RiskMetrics, one of the world’s largest risk management firms, for $122 million (€102 million).
Greenwich, Connecticut-based General Atlantic Partners and Palo Alto, California-based Technology Crossover Ventures will join Spectrum in the investment.
RiskMetrics, with headquarters in New York, was spun out of JP Morgan in September 1998. The firm provides risk analytics to blue-chip financial institutions and more recently has ramped up its product and service offerings for hedge funds and other alternative investment managers – ‘in effect, the equivalent of a ratings agency for complex securities,’ Spectrum founder and general partner William Collatos said in a statement.
Spectrum last made news in April when it announced the formation of an ‘investment initiative’ with co-founder and former head of targeted media company Primedia Charles McCurdy. The new firm, called Apprise Media, will commit between $175 million and $200 million (€146 million and €166 million) in niche media and publishing companies.
That same month, Spectrum added new partner Steven Price, the former president and chief executive officer of LiveWire Capital, as well as the former US deputy assistant secretary of defense for spectrum, space and communications.