Lightyear Capital LLC, a New York-based private equity firm is looking to invest in financial technology companies.
Yesterday, the firm said it hired Richard Korhammer, the former co-founder, chairman and CEO of Lava Trading, as senior adviser to the firm.
Korhammer will draw upon his extensive background in financial technology to help it identify and evaluate financial tech and capital markets opportunities.
Recently, Korhammer assisted Lightyear in evaluating its investment in REDI, a spinoff from Goldman Sachs into a broker neutral technology platform for global trading in equities and derivatives. Lightyear was the only private equity firm that participated in the investor consortium that included BofA Merrill Lynch, Barclays, BNP Paribas, Citadel and Goldman Sachs.
[For more on Goldman's REDI Spin-off Signals EMS Market Shift, see Ivy Schmerken's related story.]
In 1999, Korhammer co-founded Lava, an equities and foreign exchange direct market access and order management system (OMS) provider, also known for its smart order router. As CEO, Korhammer, grew the business and sold the company to Citigroup. in 2004. Korhammer remained at Citigroup as head of global equities execution. He currently serves as eh chairman of Yieldbroker, an electronic marketplace for trading of debt securities and derivatives in Australia and New Zealand, whose owners are a consortium of global debt market participants.
Lightyear is an active investor in the financial technology sector and has completed six principal investments and eight follow-on investments in the sector, according to the firm. In addition to REDI, Lightyear currently has two portfolio companies in the financial tech sector. They are: Alegeus Technologies, formerly the Healthcare Benefit Solutions business of Fidelity National Information Service, a provider of benefit administration and payment processing technology in the consumer directed healthcare market, and High One Holdings, a provider of electronic refund management services.
Lightyear was founded in 2000 by Marron, the former CEO of PaineWebber, after he sold the brokerage firm to UBS. “Richard’s extensive background in financial technology and capital markets and his management and strategic leadership experience will be an asset to our firm as we develop new investment opportunities in the financial technology sector,” stated Donald B. Marron, Chairman of Lightyear, in the release.