Warburg Pincus, a global growth investor, has invested $100m in Miami International Holdings (MIH), a technology-driven leader in building and operating regulated financial markets across multiple asset classes
Subject to certain conditions, Warburg Pincus may expand its investment in MIH to support additional growth.
“Our investment provides capital at a pivotal moment for MIAX,” said Lee Becker, Managing Director and member of the Capital Solutions team at Warburg Pincus.
“With MIAX’s strong, collaborative relationships with leading market participants, this investment supports our conviction in the entire MIAX management team and its strategy to drive continued growth and expansion across multiple asset classes in the exchange space.”
The growth investment will accelerate the next phase of MIAX’s global expansion as it executes on its strategy of building a diversified revenue stream across multiple asset classes and geographies.
Among other uses, the investment will fund the construction and fit-out of a physical trading floor in Miami, Florida for MIAX Sapphire, MIH’s fourth national securities exchange for trading U.S. multi-listed options.
MIAX Sapphire will operate both an electronic exchange and physical trading floor. The electronic exchange successfully launched on August 12, 2024, with the trading floor in Miami scheduled to go live in 2025.
MIAX Sapphire will be the first national securities exchange to establish operations in Miami. The new trading facility will include a next-generation trading floor, ancillary office space for MIAX employees and market participants, conference facilities and broadcast media space.
“We are pleased to welcome Warburg Pincus as a strategic partner and look forward to leveraging its highly respected expertise and deep network of relationships in global financial services. Together with our exchange member firms we believe we have assembled a group of the top financial partners in the world,” said Thomas P. Gallagher, Chairman and CEO of MIH.
“The investment will provide MIH with additional funding to expand strategic partnerships in financial futures and proprietary products and will also provide capital to pursue acquisitions in the U.S. and internationally to accelerate our continued growth.”
The investment will also support further growth and expansion of MIH’s agricultural and financial futures businesses on its two U.S. futures exchanges, Minneapolis Grain Exchange (MGEX) and MIAXdx including the development of new matching engine and clearing technology using MIH’s proprietary technology. Additionally, the investment will fund the Company’s expansion plans into international markets including the development and trading of new proprietary and other financial products.
“Tom Gallagher and the leadership team at MIAX have successfully engineered a technology-driven family of exchanges that set a new standard of reliability and excellence in the U.S. options trading industry. Our investment, along with ample dry powder to help support future growth, reflects our confidence in MIAX’s potential,” said Gaurav Seth, Managing Director, Head of Capital Solutions, Americas at Warburg Pincus. “We are thrilled with MIAX’s progress to date and excited about the significant opportunities for MIH.”
Lee Becker will join the board of directors of MIH. Mark Messing, Vice President at Warburg Pincus and member of the Capital Solutions team, will attend board meetings as a visitor.
Piper Sandler & Co. acted as financial advisor to MIH and Broadhaven Capital Partners acted as financial advisor to Warburg Pincus in connection with the transaction.
Davis Polk & Wardwell, LLP served as financing counsel to Warburg Pincus and Cleary Gottlieb Steen & Hamilton LLP served as financing counsel to MIH. Gallagher, Briody & Butler serves as corporate counsel to MIH.
Appleby (Bermuda) Limited served as special financing counsel in Bermuda to Warburg Pincus and BeesMont Law Limited serves as legal counsel in Bermuda to The Bermuda Stock Exchange (BSX), a wholly owned subsidiary of MIH.
