Incapital, a Palm Beach County, FL-based underwriter and distributor of fixed income and market-linked securities, and 280 CapMarkets, a San Francisco, CA-based technology company providing best execution trading support and price transparency, are merging to create InspereX.
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.
The new company will become a fintech firm with a mission of improving fixed income distribution and trading for all market participants.
- Incapital, which, co-founded by Tom Ricketts 21 years ago and led by CEO John DesPrez, provides fixed income and market-linked product origination, underwriting, trading, sales, and distribution solutions; and
- 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.
By aggregating fixed income markets, InspereX will promote:
- access to fixed income investments across asset classes;
- price transparency driven by cloud-native technology;
- Liquidity and best execution support targeting price improvements; and
- market-linked securities expertise and education initiatives.
InspereX will also include Incapital’s 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 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.
The combined firm will have approximately 200 individuals spread across primary offices in Palm Beach County, FL; San Francisco; Chicago; and New York City, as well as in other regional locations.
John DesPrez will serve as CEO and Tom Ricketts as Chairman.