New York-based independent prime broker Clear Street has secured an investment of $270m from growth equity firm Prysm Capital.
The investment from the US-based Prysm Capital is the second tranche of a $435m Series B funding round. It values Clear Street at $2bn.
With the financing, the non-bank prime broker expects to extend its reach across new markets and asset classes and expedite future product offerings.
Besides, the firm aims to enhance availability to all market participants as well as provide customers with solutions for migrating to a single-source platform.
According to Clear Street, the new funding is the second investment in the financing round led by Prysm Capital. The funding round also had support from the broker’s institutional investor base, including endowments and public pension funds.
Prysm Capital co-founder and partner Matt Roberts said: “The Prysm team seeks to invest in disruptive and innovative companies that execute at a premier level, and Clear Street certainly meets those criteria.
“Clear Street’s cloud-native platform and technology-driven approach address a very real need in capital markets today and truly set them apart from competitors.”
The investment comes after Clear Street’s first tranche of $165m in May 2022.
The first tranche included additional investors, namely Walleye Capital, NextGen Venture Partners, NEAR Foundation, McLaren Strategic Ventures, IMC Investments, Belvedere, and Validus Growth Investors.
Established in 2018, Clear Street has developed a proprietary, cloud-native, clearing and custody platform for replacing the legacy infrastructure used across capital markets.
The platform is said to enhance speed, access, and service for its customers.
Clear Street co-founder and CEO Chris Pento said: “Our team has made incredible strides since our inception in 2018, and this additional funding is further testament to the value that we bring to our clients.”
“Over the past year, the number of institutional clients on our platform increased by 500 percent and our daily transactional volume increased over 300 percent. We’re excited to keep this momentum with support from our continued partnership with Prysm.”
