Capitolis Raises $220M at $1.9B Valuation From Big Banks

Capitolis, the New York fintech founded by Israeli-born CEO Gil Mandelzis, raised $220 million in new financing on October 6, 2026. The package includes a $120 million Series E at a $1.9 billion valuation, led by Citi, and about $100 million of debt. Most of the money funds Capitolis' $200 million all-cash purchase of securities lender eSecLending.

Who invested in the Capitolis Series E round?

Citi led the $120 million Capitolis Series E, and Bank of America, Nomura and Tradeweb Markets joined as new strategic investors, according to Calcalist's October 6 report. Barclays, BNP Paribas, J.P. Morgan, State Street and UBS also took part as existing investors, and Calcalist notes that other financial investors joined as well, so the table below is not exhaustive.

Why are Capitolis' customers also its investors?

Capitolis builds technology for banks and other financial institutions, and its founder says the company has become a key strategic partner to most of the world's largest banks, as he told Calcalist on September 29. Capitolis runs two businesses, Capital Marketplace and Portfolio Optimization, that help banks with funding, capital and balance sheet constraints.

Gil Mandelzis, founder and CEO of Capitolis, previously ran EBS BrokerTec and founded the post-trade company Traiana, which ICAP acquired in 2007. He told Calcalist that debt is much cheaper than equity for Capitolis and that he believes in strategic investment of the kind the Series E brought in.

That preference shows in the structure of the deal. The company took $120 million of equity from banks that use its platform and about $100 million of debt that does not add new shareholders. Equity is about 55 percent of the $220 million total and debt about 45 percent (an Olam calculation).

Bank money in Capitolis is not new. Globes reported in 2021 that Citi, J.P. Morgan and State Street were already investors when Capitolis raised its $90 million Series C, and Globes reported in 2024 a $20 million strategic investment from four banks led by Citi, with State Street, Morgan Stanley and UBS. Citi has therefore backed Capitolis across at least three separate financings.

How much has the Capitolis valuation grown since 2022?

The Capitolis valuation rose from $1.6 billion in its 2022 round to $1.9 billion in the Series E, according to Calcalist. That is an increase of about 19 percent over four years (1.9 divided by 1.6, an Olam calculation).

FinTech Futures reports that the Series D was $110 million, led by Canapi Ventures, SVB Capital and George Osborne's 9Yards Capital. Calcalist reported on September 29 that Capitolis had raised approximately $300 million in total before this round.

What will Capitolis do with the eSecLending money?

Capitolis will use most of the financing to buy eSecLending, a securities lending firm based in Boston, for $200 million in cash. Capitolis agreed on September 29 to buy the company from Parthenon Capital and eSecLending's management, and Calcalist reported that the deal still needs regulatory approvals and antitrust clearance.

eSecLending works with pension funds, insurers and asset managers that lend securities to large global banks. About 120 eSecLending employees would join Capitolis' 200-person workforce, and Parthenon Capital will also invest in Capitolis. Mandelzis told Calcalist that the acquisition should generate tens of millions of dollars in revenue as early as next year, and the company describes it as its fourth acquisition in five years.

What is securities lending, and why is Capitolis adding it?

Securities lending is the practice of institutions lending securities they own to large global banks, and eSecLending runs that process for pension funds, insurers and asset managers. According to Calcalist's September 29 report, eSecLending has operated for 26 years and provides customized securities lending and collateral management for institutional investors.

Capitolis says the purchase gives it a combined offering across securities lending, repo and financing markets. Serene Murphy, Global Head of Corporate Development at Tradeweb Markets, said in the Capitolis announcement that securities lending is the next market to move from manual to electronic processing. Tradeweb is a new Series E investor, so that view comes from a party with a financial stake in the deal.

The deal excludes eSecLending (Europe) Limited, which Calcalist says will keep providing services to eSecLending. Craig Starble, CEO of eSecLending, said Capitolis' global reach and ties to leading financial institutions will let his firm widen the solutions it offers clients.

What has Capitolis bought before eSecLending?

Capitolis has made four acquisitions since 2021, and eSecLending carries the highest disclosed price of the four. The table below lists each deal with the product it added.

The eSecLending price is more than four times the $46 million paid for Capitalab (200 divided by 46, an Olam calculation). Each deal adds a distinct product, first derivatives compression, then U.S. secured financing, and now securities lending, which fits the company's own description of eSecLending as its fourth acquisition in five years.

What could slow the eSecLending deal?

The main open condition is regulatory review, because the deal still needs approvals and antitrust clearance. The purchase price also takes up about 91 percent of the $220 million financing (200 divided by 220, an Olam calculation), and Finance Magnates reports that Mandelzis did not give an exact allocation of the funds.

The revenue case also rests on management's own forecast. Mandelzis told Calcalist the acquisition should add tens of millions of dollars in revenue next year, and no outside source has confirmed that figure.

How much has the Capitolis team grown?

Capitolis employed about 130 people in Israel and the United States in December 2024, according to Calcalist, and Mandelzis put the current workforce at 200 in September 2026. That is 70 more people, a rise of about 54 percent (200 divided by 130, an Olam calculation).

If the eSecLending deal closes, the 120 employees joining from Boston would take headcount to about 320. FinTech Futures reports that Capitolis also hired a chief financial officer, Ashwath Bhat of Fractal, in July and a chief technology officer, Bank of America veteran Murugan Manickam, last month. Mandelzis told Calcalist that Capitolis expects to start generating significant cash flow soon.

What does the Capitolis round say about Israeli fintech?

Capitolis is headquartered in New York, but Mandelzis is a native Israeli and the company has kept a Tel Aviv office that held much of its technology team. A November 2023 company announcement put the Tel Aviv headcount at 46 employees, and current figures were not available at publication.

Olam's report on Israeli startup exits below peak covers At-Bay, sold for $575 million, and Bluevine, sold for $340 million, both under 2021 marks. Capitolis offers a different data point: a funding round priced above the company's previous valuation. The two figures measure different events, an acquisition price and a private round valuation, so they are not a like-for-like comparison.

What should readers watch next?

The eSecLending purchase still needs regulatory approvals and antitrust clearance, so the first thing to check is whether it closes. If it does, Capitolis adds a 120-person securities lending business to a 200-person company, and Mandelzis' forecast of tens of millions of dollars in revenue from it becomes the number to test.