Warburg makes double investment in back office processing

Global private equity firm Warburg Pincus has bought Wall Street Systems and Trema to build a market leader in treasury and capital market transaction processing.

Warburg Pincus, a global private equity firm, has backed a team of financial services executives in a $200 million (€156 million) double transaction to acquire Wall Street Systems and Trema, two treasury and capital market transaction processing businesses.

The combined organisation, which will operate under the name Wall Street Systems, has revenues of $120 million, with approximately 500 employees servicing 300 bank, corporate and central bank clients, operating out of 13 offices worldwide.

The company’s software processes millions of transactions and hundreds of billions of dollars each day.

Its clients include banks, such as ABN Amro, Citigroup, Nordea and RBS; corporations, including British Petroleum, Ford, GE Capital.; and central banks, such as the European Central Bank and Banque de France.

Cary Jay Davis, a managing director in Warburg Pincus New York offiice where Wall Street Systems is based, led the deal. A source close to the company said Warburg Pincus would provide financing for further acquisitions if appropriate.

Financial services is one of Warburg’s sweet spots for investment. Last week the firm backed Aoelus Re, a reinsurance business, in a $500 million buyout.