Incapital merges with 280 CapMarkets to create FinTech company InspereX

By Pavithra R

Incapital, a leading underwriter and distributor of fixed income and market linked securities, has announced entering into a merger agreement with 280 CapMarkets, a technology company providing best execution trading support and price transparency to create InspereX. The transaction is expected to close in the first quarter of 2021, subject to customary regulatory approval.

Under the agreement, the new firm will become a unique FinTech firm with a mission of improving fixed income distribution and trading for all market participants. The merger unites the strengths of 2 pioneering companies: Incapital, with success history in fixed income and market-linked product origination, trading, sales, underwriting, and distribution, co-founded by Tom Ricketts; and Silicon Valley based FinTech 280 CapMarkets, co-founded by technologists and bond veterans, including Gurinder S. Ahluwalia and David Rudd to digitally transform how the fixed income markets are viewed, accessed, and traded by advisors, institutions, and issuers.

“We founded Incapital in 1999 to break down the barriers many investors and issuers faced when trying to access the full potential of the fixed income markets and later market-linked securities. It was not a level playing field then, and while it has improved over the years thanks to the emergence of new technologies and market entrants, we believe improvement needs to accelerate for all market participants,” said Incapital Co-Founder and Chairman Tom Ricketts.

The business s strategy for InspereX will combine Incapital’s market knowledge, diverse products, strong distribution relationships and capital strength with the power of 280 CapMarkets’ leading edge technologies, including the revolutionary BondNav, a cloud-native bond aggregation platform. It will also include Incapital’s industry-leading market-linked products (MLP) business.

By aggregating fixed income markets, InspereX will promote:

• Unparalleled access to fixed income investments across asset classes,
• Price transparency driven by cloud-native technology,
• Liquidity and best execution support targeting price improvements, and
• Industry-leading market-linked securities expertise and education initiatives.

“The merger of Incapital and 280 CapMarkets is highly strategic and complementary, as together, we seek to drive transformation in the fixed income markets. I look forward to serving as CEO as we join forces to establish InspereX,” said Incapital CEO John DesPrez.