TA invests $50m in financial tech company

The Boston private equity firm had made a $50m minority investment in financial technology company C&S Marketing.

Boston-based private equity firm TA Associates has invested $50 million (€38 million) in Sacramento, California-based C&S Marketing, a provider of mortgage lending information and technology, for an undisclosed minority stake.

Founded in 1997 by Steve Schroeder and Kraig Clark, C&S Marketing offers technology platforms known as automated valuation models to help mortgage lenders process loans. The company currently works with 49 of the top 50 mortgage lending companies in the US, but TA vice president Jon Kossow believes there is still room for growth as “there are thousands and thousands of lenders serving all different facets of the market”.

TA Associates sourced the deal out of its Menlo Park, California office through the firm’s traditional methodology of “cold-calling” prospective companies. TA managing director Jeffrey Chambers and Kossow will both join the C&S board of directors while Schroeder and Clark will continue in their roles as chief executive officer and chief operating officer, respectively.

Over the past two years, TA has been an active minority investor in the financial technology sector. In December 2004, the firm made an undisclosed minority investment in Intercontinental Exchange, an Atlanta-based operator of global over-the-counter electronic marketplaces. Earlier that year, TA invested €35 million in Dublin-based fixed income trading provider ION Trading Group and in October 2003, the firm put $82 million into GlobeOp Financial Services, an automated supplier of back-office services for hedge funds, fund of funds and high net worth investors.

TA Associates, founded in 1968, manages $6 billion in capital and is currently investing funds totaling approximately $3.5 billion. In November 2004, the firm raised $800 million in TA Atlantic and Pacific V, a non-US investor side vehicle for its $2 billion growth equity fund, TA IX, and a $500 million subordinated debt fund, both of which were raised in 2000.