General Atlantic snaps up a small stake in Markit

MARKIT, a data provider and index administrator, said yesterday that private equity firm General Atlantic had agreed to take a minority stake in the company.

General Atlantic is understood to have paid $250m (£154.5m) in exchange for a 7.5 per cent stake in the market-data firm.

General Atlantic chief executive Bill Ford will join Markit’s board, Markit said in a statement.

General Atlantic, which was established in 1980 and manages about $15bn, also will help Markit with acquisitions and developing its growth strategy.

Markit, with more than 1,400 employees, provides data, valuations and trade processing across asset classes to institutions.

Markit is expected to use General Atlantic’s investment for forthcoming acquisitions.

General Atlantic has committed more than $1bn in growth equity capital in the last six months, including more than $500m in the financial services industry.

In October, it was among a consortium of investors that bought First Republic Bank, Bank of America’s $1bn private wealth management business.