Penson Worldwide – the Dallas-based provider of outsourcing services to private banks, wealth managers, hedge funds and broker-dealers – says it has received an investment of $25 million from Technology Crossover Ventures (TCV), a Silicon Valley-based private equity firm.
As part of the transaction, which will give TCV a minority stake in the global securities processing firm, TCV General Partner John Drew has joined Penson’s Board of Directors.
The proceeds will be deployed throughout Penson’s operations in the USD, UK and Canada.
“TCV’s capital injection to the Penson group of financial services and financial technology companies brings more to the table than merely an increase in liquid assets that will support the growth of our correspondents’ activities,” says Daniel P. Son, President, Penson Worldwide. “TCV’s investment is an endorsement of Penson’s flexible service offerings in the global financial markets, and in the quality of the technology solutions that underpin them. As a relatively young company, just entering our tenth year, Penson has a history of rapid growth. Our success is rooted in the flexibility and superior services for which we are becoming increasingly well known. TCV’s investment will help us to continue along this path; delivering high-quality global securities processing services to our existing correspondents, adding new business to our North American and European clearing entities, and expanding the worldwide client base of Penson’s leading-edge trading solutions.”
John Drew, General Partner, TCV, describes Penson as a rapidly growing company with leading-edge technology operating in a traditional market place. “We were impressed with Penson’s growth pattern, the quality of its management team and the company’s ability to deliver services to existing and new clients,” he says.