The Financial Markets Sector consists of firms that support trading in the capital markets. Target companies include market centers and exchanges, trading platforms, broker-dealers and FCMs, education and research providers, clearing and settlement services, market data information companies, trading groups as well as financial technology providers that service the industry.

The sector is large and growing. Trading volumes have exploded in recent years as economic growth, market structure changes and product innovation have increased the number of participants on a global scale. At the same time, technological advances have given rise to an abundance of new trading products and services that have increased the speed, volume and complexity of financial transactions for investors. In addition, cross-border consolidation and more homogenized regulatory frameworks should continue to fuel global expansion and, ultimately, volume growth in financial transactions.

From an investment perspective, the sector has substantial barriers to entry. Competitive dynamics, regulatory changes and rapid technological innovation require considerable domain expertise when navigating investment opportunities. At the same time, the rapid growth of the sector has created a favorable environment for investors who can anticipate market trends and source investments. Vernon & Park believes that the sector has entered a prolonged period of global growth, consolidation and innovation, creating attractive opportunities for its investment capital.

While many private equity funds focus on companies at a particular growth stage, Vernon & Park invests in sector companies all along the maturity continuum. For early stage companies, we have the ability to partner with strategic investors, which can accelerate growth and limit downside risk. For later stage companies, we can access larger pools of capital from firms who seek exposure to the sector but lack the requisite domain expertise. Ultimately, Vernon & Park is sector focused and growth stage agnostic.

New York Mercantile Exchange (2007)
Intercontinental Exchange (2006)
New York Board of Trade (2006)
Philadelphia Stock Exchange (2005)
New York Stock Exchange (2004)
Pacific Exchange (2004)
Deutsche Bourse (2004)
Chicago Board of Trade (2002)
Chicago Mercantile Exchange (2001)