A Chicago tech company that makes software for institutional investors like universities and pension funds has raised a round of financing to help it grow.
Backstop Solutions, founded in 2003, announced Tuesday that it has raised $20 million from existing and new investors, including Tao Huang, the former COO of Morningstar; David Bradley, the president of Huizenga Capital Management; Roger Kafker, a 30-year veteran investor in the asset management industry, and Vistara Capital Partners.
"As the asset management industry continues to grow, so does the demand for solutions that make investment and operations professionals more productive and effective," Kafker said in a statement. "With its sterling reputation as the platform of choice for both alternative asset owners and managers, Backstop is poised to extend its market position as the premier productivity suite provider to this space."
Backstop will use the new funding to expand its staff and fuel potential acquisitions of other tech companies, said Maryling Yu, the company's vice president of marketing, in an emailed statement to Chicago Inno. She said this isn't the first round of financing Backstop has raised, but declined to provide details on any others.
The company's platform helps investors optimize their investment process by providing them with efficient methods to manage research, portfolios and clients. It also provides portals for investor relations and accounting.
In 2015, Backstop acquired Cogency Software, the maker of an automated accounting software in San Francisco, for an undisclosed amount, according to Crain’s.
Over the past year, Backstop says it has been growing, accumulating nearly 800 clients, including Carmel Partners and The University of Tennessee. Backstop now employs 220 people in its Willis Tower offices, Yu said.
"Backstop is in a unique position to grow and consolidate our leadership in this industry," said Backstop CEO Clint Coghill in a statement. "Having the financial backing, vision, and industry-leading experience of our investors will help us achieve our vision even more rapidly and fulfill our mission to help institutional investors maximize every minute of their time."
