Incapital, a leading underwriter and distributor of fixed income and market-linked securities, and 280 CapMarkets, a technology company providing best execution trading support and price transparency, announced today they are merging to create InspereX. The new company will become a unique fintech firm with a mission of improving fixed income distribution and trading for all market participants. The transaction is expected to close by the end of the first quarter 2021, with the merger of the firms’ broker dealer businesses to occur thereafter, subject to customary regulatory approval. Financial terms were not disclosed.
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“The merger of Incapital and 280 CapMarkets will benefit all our client stakeholders, providing a new, elevated level of fixed income access, reach, transparency, and insight. More clients will benefit from our combined focus on exceptional client service and advocacy, while having access to 280’s breakthrough technology, BondNav®.”
The creation of InspereX unites the strengths of two pioneering companies: Incapital, with its history of success in fixed income and market-linked product origination, underwriting, trading, sales, and distribution, co-founded by Tom Ricketts 21 years ago; and Silicon Valley fintech 280 CapMarkets, co-founded by technologists and bond veterans, including Gurinder S. Ahluwalia and David Rudd, in 2016 to digitally transform how the fixed income markets are viewed, accessed, and traded by advisors, institutions, and issuers.
Incapital Co-Founder and Chairman Tom Ricketts commented, “We founded Incapital in 1999 to break down the barriers many investors and issuers faced when trying to access the full potential of the fixed income markets, and later market-linked securities. It was not a level playing field then, and while it has improved over the years thanks to the emergence of new technologies and market entrants, we believe improvement needs to accelerate for all market participants.”
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Incapital CEO John DesPrez added, “The merger of Incapital and 280 CapMarkets is highly strategic and complementary, as together we seek to drive transformation in the fixed income markets. I look forward to serving as CEO as we join forces to establish InspereX.”
The InspereX Client Benefits
The business strategy for InspereX will combine Incapital’s market knowledge, diverse products, strong distribution relationships earned over 20+ years, and capital strength with the power of 280 CapMarkets’ leading-edge technologies, including the revolutionary BondNav® – the first cloud-native bond aggregation platform.
By aggregating fixed income markets, InspereX will promote:
- Unparalleled access to fixed income investments across asset classes;
- True price transparency driven by cloud-native technology;
- Liquidity and best execution support targeting price improvements; and
- Industry-leading market-linked securities expertise and education initiatives.
For fixed income issuers, InspereX will offer the benefits of unprecedented market depth, liquidity, and precisely targeted distribution to a range of clients, making it easier to diversify sources of funding and lower borrowing costs.
InspereX will also include Incapital’s industry-leading market-linked products (MLP) business, which generated 2020 notional sales exceeding $5 billion and will continue to provide a significant and diversifying revenue stream to the newly created company. Focused on distribution through independent broker dealers and banks, the professional MLP sales, trading, and product origination team provides financial advisors unparalleled web-based educational resources, access to a broad array of market-linked financial solutions issued by all major investment banks, and expertise in positioning market-linked products to attain their clients’ financial goals.
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