IMTC Secures Venture Capital Funding and Focuses on SMAs


IMTC, a provider of fixed income investment management technology, secured its first round of external funding, led by venture capital firm Nyca Partners, enabling the previously privately-funded company to scale teams software development and customer success.

This round of funding will help IMTC expand its software engineering resources, enabling it to improve its optimization engine and expand its list of industry and data connections, with a focus on separately managed accounts, a said the company.

“We are looking to double and triple our development team, bring resources here, and that will allow us to scale, to attack the growth that we see in the market,” said Russell Feldman, who is the new CEO of the company.

“It’s going to allow us to capitalize on the opportunity that fixed income presents, which is such a huge, untapped space, from a technology perspective,” Feldman added. “It’s been technologically overlooked for so long, that now having both the funding resources and the partners to work with us to realize that future is super exciting.”

Over 75% of proceeds will be used to hire software engineers and customer success resources who will be deployed to further enhance existing offerings and design solutions in the area of ​​exchange-traded funds and custom indexing. Since the majority of its customers are muni-focused, this funding round will help the company expand the solutions offered by IMTC for separately managed account managers. Financial details of the deal were not disclosed.

Feldman believes the partnership with Nyca will be successful, saying Nyca has an extensive LP network deep in space operated by IMTC. “Few companies have the know-how and the capacity that they have in the area of ​​fixed income capital markets,” Feldman said.

Over the past year, IMTC has seen a growing number of RIAs and institutional managers looking to simplify and automate their fixed income investment processes, he said. With its cloud-native investment management system, it enables revenue managers to establish, optimize and rebalance accounts faster and with greater insight, the company said.

“We are looking to double and triple our development team, bring resources here, and that will allow us to scale, to attack the growth that we see in the market,” said Russell Feldman, new CEO of IMTC.

“The client experience is changing as clients demand more personalization and flexibility from their portfolio managers,” Feldman said. “Asset and wealth managers are encouraged to provide solutions that take into account investors’ preferences for environmental, social and governance; socially responsible investing and impact investing, in addition to more typical (but still individualized) restrictions and guidelines they wish to put in place.”

He said IMTC’s optimizer improves results and reduces costs. A key differentiator, he said, is the flexibility for users to set criteria and preferences to match portfolios needing attention with the best-fit bonds that are live in the market.

“Our platform provides optimal buy and sell recommendations on hundreds of portfolios in seconds, while taking into account unique investment guidelines, targets and objectives for each account,” Russell said. “Because our technology is cloud-native, it allows for the scalability needed to process the massive amount of data and computation needed to deliver optimal recommendations in seconds.”

“Put simply, we help city managers scale assets and portfolios under management without increasing headcount,” he added.

IMTC has assembled a team that understands fixed income versus older equity-turned-bond systems, which don’t always work, Feldman said.

“By having the right fixed income experts, building solutions and thinking about workflows dynamically, we are able to automate processes,” he said. “One of the things that sets us apart is having the right team members in place, which allows us to capitalize on the uniqueness of the markets.”

Feldman said IMTC differentiates itself in the portfolio optimization space today, a tool that traditional providers don’t offer and don’t necessarily have a solution for.

“It will allow us to continue to develop that and offer that and scale that offering across the market to satisfy different players in the space,” Feldman said. “Being able to enable different types of fixed income managers to take advantage of the optimization engine is now critical for us.”

Feldman added that IMTC will continue to grow its existing business and that he sees opportunities for the company in the area of ​​personalized indexing.

“It’s a market that fixed income investors haven’t really touched, and it’s a market that IMTC is well positioned for given the portfolio optimization software it already has,” he said. he declares.


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