IGUAKO Capital is a work of institutional fiction by the Iguako Institute for Applied Unreality. No financial services are offered, no accounts exist and nothing here is an offer, a contract or advice.About this work
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Sector · Deployment

Financial Systems.

Financial systems means the plumbing rather than the products. Reconciliation engines, payment rails for corporate users, fund accounting platforms and messaging between custodians all sit behind the counterparties IGUAKO Capital already deals with. The firm buys the software and the operating licences that make those flows work, and never the deposit-taking business in front of them.

Exposure
US$58 million across 3 positions
Positions
3
Divisions
3
Regions
3

Thesis

Financial systems positions earn less in a good year than an origination position and lose almost nothing in a bad one. That is what makes them a home for proceeds. IGUAKO Capital funds the platforms its own counterparties depend on, holds them for recurring revenue, and takes the operating discipline back into its own processing.

Information & DataInvestment BankingCommercial Finance

CaribbeanEuropeMiddle East

The 3 positions total US$58 million. One is a reconciliation and control platform used by fund administrators. One is a payments institution serving corporate treasurers across three regions. The third is a fund accounting platform sold to independent administrators. Together they process instructions for counterparties in 19 of the 28 jurisdictions where the firm is registered.

Switching cost is the whole thesis. An administrator that has moved 8 years of records into a platform does not move again over a price difference. Revenue is recurring, contracts run for 3 to 5 years, and the operating conditions attached to a payments licence keep new entrants slow. Uptime obligations are underwritten with the Chief Risk Officer before completion.

Themes

  • Reconciliation and control platforms for fund administrators
  • Corporate payment rails held under an operating licence
  • Fund accounting sold to independent administrators
  • Recurring contracts of 3 to 5 years
  • Switching costs measured in years of migrated records

Case studies

1 in this sector.

Insights

Research on the sector.

Financial Systems: sector briefPDF · 6 KB · Sector briefs