#United States #San Diego #Saphyre #FTV Capital #HCAP Partners

HCAP Partners Successfully Exits Its Investment in Saphyre

On August 14, 2025, HCAP Partners, a prominent private equity firm based in California, proudly announced its successful exit from its equity position in Saphyre, Inc. This organization stands out in the financial technology sector, specifically within the realm of AI-driven solutions that enhance pre-trade and post-trade automation processes. The company is now entering a new phase of development, bolstered by a remarkable $70 million growth equity investment spearheaded by FTV Capital. This investment highlights Saphyre's robust growth trajectory and its pivotal role in modernizing financial services.

Founded with the aim of simplifying the financial industry’s intricate pre- and post-trade procedures, Saphyre has experienced a rapid expansion, acquiring a diverse client base spanning the United States and Europe. The company services an array of top-tier clients, including asset managers, custodians, broker-dealers, and administrative firms, demonstrating its significant impact on the financial sector. Saphyre’s patented AI technology markedly improves the speed of trading, lowers operational risks, and facilitates a seamless onboarding experience for clients, all while ensuring lifecycle automations are performed efficiently.

HCAP Partners first took a substantial stake in Saphyre back in 2021 during a Series A funding round, in which they were the lead institutional investor, joining forces with renowned financial institutions like J.P. Morgan and BNP Paribas. Throughout the duration of their partnership, Saphyre not only increased its recurring revenues but also expanded its leadership team and board of directors, establishing a strong governance framework.

Tim Bubnack, Managing Partner at HCAP Partners, expressed satisfaction with the successful exit, acknowledging the efforts of Saphyre's dedicated employees, leadership, and advisors. He stated, "This marks a major milestone for the Saphyre team, and we're very pleased with the outcome for the company and its shareholders. We appreciate the dedication and hard work of Saphyre's employees, leadership team, board of directors, and strategic advisors who contributed to this success. We look forward to seeing Saphyre continue driving innovation in pre- and post-trade operations."

The role of HCAP Partners has been influential in Saphyre’s expansion, working hand-in-hand with the executive team to enhance day-to-day operations, attract leading industry talent, and build robust governance structures. Bubnack, who spearheaded the investment strategy, also served on Saphyre's Board of Directors while Chenjing Wang from HCAP observed board activities closely.

Understanding Saphyre's Innovations

Saphyre’s platform revolutionizes pre-trade data and procedural activities by utilizing advanced AI technology, creating a digital ecosystem that connects various stakeholders—from asset owners to brokers and custodians. The system retains vital memories of both data and documentation, thereby eliminating the need for clients to repeatedly search for or re-submit information. This efficiency helps clients to assess risks more promptly and speeds up the onboarding processes, ensuring that they can achieve a real-time account status and significantly cut down on redundant post-trade tasks by up to 75%. This innovative approach not only streamlines operations but also enhances the overall adaptability of financial institutions in a fast-paced market.

About HCAP Partners

HCAP Partners has established itself as a leader in providing mezzanine debt and private equity funding to underserved lower-middle market companies in the United States. Focused on investments ranging from $5 million to $35 million in businesses generating annual revenues between $10 million and $100 million, HCAP Partners seeks to drive growth in diverse sectors, including healthcare, software, services, and manufacturing. With a successful track record of investing in over 60 companies since its inception, HCAP uses its expertise and resources to facilitate optimized performance and increased value in its portfolio, underlining its commitment to creating positive societal impacts through its Gainful Jobs Approach™. For more detailed information, visit www.hcap.com.