Paladyne Systems, Inc., a solutions provider to the global hedge fund industry, announced it has acquired Oakwood Financial Technologies, LLC, a software company providing loan management, administration, and trading solutions for participants in the loan origination and syndicated loan markets. This deal expands the Paladyne technology platform with the availability of Paladyne Credit Master, a comprehensive loan management system and underscores Paladynes commitment to meeting the evolving needs of the global hedge fund sector.
Bank debt, as an asset class, is growing in popularity because of its relatively low risk (in terms of its position on the cap structure) and high returns, particularly compared with equities and corporate debt. Hedge funds which can act quickly to invest in a bank debt deal are playing an increasing role in returning liquidity to the corporate lending market.
In response to the growing demand for technology solutions in the loan marketplace, Paladyne has released a comprehensive front-to-back office solution for trading and administering complex bank loan and structured deal portfolios, says Sameer Shalaby, CEO of Paladyne Systems. Paladyne Credit Master brings innovative and flexible technology to a manually-intensive loan market which will significantly reduce cost and operational risk for firms trading and supporting this asset class.
This strategic acquisition, which follows news that Paladyne is aggressively expanding in Europe and Asia, demonstrates the companys commitment to building out its platform through hiring and acquisitions to address the needs of hedge funds globally. Paladynes move to build out the companys capabilities is part of a broad consolidation in the industry, in which larger players are buying up smaller providers. The Oakwood acquisition will facilitate Paladynes expansion into the loan technology and services marketplace, complementing Paladynes existing offerings.
D.C.