7Ridge, a growth equity firm investing in technologies for financial services, has acquired the American Financial Exchange, an electronic exchange for direct lending and borrowing for American banks and financial institutions.
The deal by 7Ridge looks to help AFX drive its growth trajectory and expands its network of members borrowing and lending on its platform as well as further adoption of its credit-sensitive Ameribor benchmark. Ameribor is set daily based on observable and competitive transactions in unsecured interbank loans executed on the AFX platform through a network of over 1,000 banks and financial institutions with a focus on regional, midsize, community and minority-owned banks.
“This transaction positions AFX with the resources and commitment to take the exchange and Ameribor to the next level and to expand on the important work of our members in building a transparent and transaction-based benchmark and further build shareholder value,” comments Richard Sandor, founder and chairman emeritus of AFX.
AFX was advised on the transaction by Broadhaven Capital Partners and Willkie Farr & Gallagher LLP. 7Ridge was advised by Proskauer Rose LLP.