CTA Software Provider

$1.2MM 2018 Sales, $730K EBIT

$1.3MM 2017 Sales, $479K EBIT

$1.5MM 2016 Sales, $485K E

The Company is a privately-owned supplier of operations software to the alternative investment industry. The Company's primary product is a proprietary enterprise system used by advisors around the world. The software allows advisors to manage both commodity pools as well as separately managed accounts.

Customers & Markets

Customers are primarily commodity trading advisors (CTAs) and hedge funds with assets under management ranging from $10M to $3B. All customers trade futures, and most trade LME (London Metals Exchange) and FX (Foreign Exchange). A small number trade equities and/or ETFs (Exchange-Traded Funds). In addition, the Company maintains a secondary channel of service providers that offer hosted accounting services to CTAs.

 

Because the software encompasses the entire range of operations for an alternative investment advisor it translates into customers that are very “sticky”, resulting in predictable, low maintenance, highly profitable, long-term revenue.

Products and Services

The Company's product and service offering consists of a branded proprietary product, custom integration services, and custom application development directly related to integrating the application into customer environments.

They also provide implementation project management and offer remote backup.

The product is unique in its scope, breadth of instrument support, ability to integrate with a wide variety of standards, and its focus on separately managed accounts.

It also provides a comprehensive programming interface allowing it to become the organization’s base technology platform.

Licensing & Technology

The proprietary product is licensed using a monthly right- to-use fee that

includes support and upgrades. The fee structure is tiered, based on the asset manager’s assets under management.

The typical contract term is 24 months and the contracts auto- renew at the end of the term. The advisor’s AUM is reviewed monthly.

The Company also offers a software escrow for the sources and unlimited license key as insurance should the Company cease operations to those customers that wish to purchase it.

 

Gross Revenue:  $1,200,000
EBITDA: $730,000
EMPLOYEES:   1FT, 2 Owners


GenerationalEquity Logo wideThis Merger & Acquisition Opportunity is available via Marigold Resources' Senior Affiliate Partner status with Generational Equity.

Upon receipt of this completed and digitally executed NDA below (or from direct link here) we will follow up by phone and/or e-mail to qualify providing the complete offering memorandum and schedule a time to discuss the opportunity further. 

Merger & Acquisition Opportunities