CMG Completes Strategic Financing and Expands Global Partner Network as it Launches Industry’s First Connected ECM Network
Bank of America, Credit Suisse and Existing Investors Back CMG’s Vision for Streamlined ECM Workflows
NEW YORK (January 20, 2022) — Capital Markets Gateway LLC (CMG), a fintech firm modernizing the equity capital markets (ECM), is expanding its global network of partners with Bank of America and Credit Suisse joining as investors and clients. The strategic capital raise also includes participation from existing investors Citi, Fidelity Investments, Franklin Templeton, Goldman Sachs, J.P. Morgan, Morgan Stanley, Shea Ventures, and StageDotO.
The funding is supporting CMG’s launch of XC™, the first connected ECM platform in the U.S., and the company’s global expansion in 2022. The CMG XC network is comprised of more than 100 investment firms representing $20 trillion in AUM, connecting with 10 leading investment banks. The network is the first U.S. ECM platform to directly connect the buy-side and sell-side in real-time, offering a centralized means of interaction across an offering’s lifecycle. In addition to its connected workflow solutions, the company’s customers benefit from actionable market intelligence and data analytics via CMG’s DataLab™ product.
“We are in the position where our investors are also the target audience for our platform. Their guidance, support, and investment capital are further confirmation that we have built the right tools for the industry, in the right way, at the right time,” said CMG CEO and Co-Founder Greg Ingram. “This collaboration has helped shape the industry’s most innovative ECM platform featuring intuitive workflow, powered by standardized data. Our technology will vastly improve the investment process.”
“For years, market participants have asked for an industry-driven, technology solution that directly connects the buy-side and sell-side to address workflow communication inefficiencies in the primary issuance market,” said Elif Bilgi Zapparoli, co-head of Global Capital Markets at Bank of America. “As the market structure has evolved and such solutions in other asset classes have emerged, we are pleased to now partner with CMG to combine our technologies in the equity capital markets to deliver best-in-class capabilities to clients.”
“As an early investor in CMG and an early adopter of the platform, we have been able to leverage its data-driven capabilities to help streamline our workflows. We are excited about CMG’s leading role in the evolution of equity capital markets.” said Michael Baumann, Head of Global Syndicate, Fidelity Investments.
U.S. ECM activity continues at a record pace; CMG data shows that 2021 marked the fourth consecutive annual increase in capital raised, with a record $450.7B (+32.9%) in ECM proceeds (excluding SPACs). The dramatic increase in proceeds was driven primarily by a staggering 88.3% increase in IPO transaction volume (433 offerings) over the previous year.
“Credit Suisse is excited to invest and partner with CMG to help take equity capital markets into the digital age. We know our clients will benefit from this platform as they increasingly adopt digital solutions to streamline their workflow.” said Danielle Johnson, Head of Venture Capital Coverage, Credit Suisse.
For more information about CMG, please visit www.cmgx.io.
About Capital Markets Gateway LLC
Capital Markets Gateway (CMG) is a financial technology firm modernizing the equity capital markets (ECM). CMG connects investors and underwriters via a neutral platform that delivers integrated ECM data and analytics, unrivaled transparency, and workflow efficiencies. Providing a digital system of record for firm-wide deal activity, CMG helps clients make more timely, better-informed decisions. Launched in 2017 by a team of experienced ECM practitioners, the CMG platform is currently relied upon by more than 100 buy-side firms representing $20 trillion in AUM and 10 investment banks. For more information visit www.cmgx.io.