CORK FINTECH UP $30 BN SINCE JPMORGAN SALE
Global Shares, the financial technology company based in Clonakilty, Co Cork, has grown its assets under administration by $30bn (€28bn) since investment banking giant JP Morgan took it over.
The company, which manages employee stock plans for startups, tech groups, and enterprise brands, grew assets under administration to $230bn with over one million participants. JP Morgan revealed Global Shares’ growth at a recent investor day.
Tim Houstoun, CEO of Global
Shares, said the firm had plans to grow further in the years ahead.
“We are energised by the progress we’ve made, and we’re looking forward to the next stage of our growth,” he said.
“Expanding our services to better meet the needs of our clients and their employees remains a top priority, along with providing a comprehensive suite of offerings that not only addresses equity compensation but also empowers employees to achieve financial prosperity.”
Global Shares was founded in 2005 and transitioned from a low-margin service business into a global provider of employee share management products.
In 2022, JP Morgan, whose CEO is James Dimon, acquired Global Shares in a deal worth $730m, one of the largest exits an Irish financial technology company has achieved.
Global Shares’ backers included technology guru Pearse Mee, US private equity firm Motive Partners and the Ireland Strategic Investment Fund. Richard Hayes, the founder and former CEO of IFG, also backed the company.
The company’s employees and executives also split a portion of the total payout.
At the time of the acquisition, it had nearly $200bn in assets under administration across 650,000 corporate employee participants. Clients at that time included Saudi Aramco, L’Oréal and Cargill.
The latest accounts for Global Shares Ireland, the Irish arm of the business, showed a pre-tax loss of €21.57m in 2022, a 362pc increase on the pre-tax losses of €5.95m recorded the previous year. Revenues rose by 9pc from €31.56m to €34.9m.
Global Shares Ireland’s results showed the chief factor behind the increased pre-tax losses was the company’s more than doubling of administrative expenses. Directors said they considered the results satisfactory and “expect growth in the coming three to five years, as the company expands its client base, with the help of the JP Morgan Chase post-acquisition on August 11, 2022”.