New York-based bond trading platform Trumid announced last week that it has successfully secured new capital in its latest $60 million funding round, led by global investment firm Hillhouse Capital. As part of their investment, Hillhouse Capital will take a minority stake in Trumid. Existing investors Arbor Ventures and Singapore Exchange (SGX) also participated in the funding round.
Founded in 2014, Trumid’s goal has been to make credit trading more efficient through the use of fintech. Its client network currently consists of more than 425 buy-side and sell-side institutions. The company plans to use this new capital to grow its U.S. corporate bond business and for protocol and product expansion.
Trumid president Mike Sobel remarked that Hillhouse Capital is a “fantastic partner” for his company: “They have a stellar track record of supporting long-term growth, and will help us improve and expand for years to come.”
Hillhouse Capital founder and CEO Lei Zhang expressed his support for Trumid, saying that “We have been highly impressed with Trumid’s ability to use data and technology in developing an outstanding corporate bond trading platform…we look forward to leveraging our network and operational expertise to help Trumid build out its presence globally."
Beijing-based Hillhouse Capital’s investment in Trumid comes approximately six months after it successfully raised $10.6 billion in a funding round for its newest private equity fund last September. This new fund is intended to focus on Asian technology, consumer and health care sectors. According to data provider PitchBook, Hillhouse Capital Fund IV beat KKR’s record of $9.3 billion to become the largest private equity raise focused on the Asia-Pacific region.
Hillhouse Capital was founded in 2005 by Zhang—a Yale graduate—using $20 million in seed capital from the Yale Endowment. The firm currently has over $50 million under management and manages assets for a range of institutional clients such as Yale University, Canada Pension Plan Investment Board, the Mayo Clinic and San Francisco Employees’ Retirement System. Hillhouse Capital has made prominent investments in Baidu and Tencent Holdings in addition to several investments in high-profile China-based technology start-ups such as electric car maker Nio, online on-demand services platform Meituan and ride-hailing company Didi.