HK-based Hillhouse Capital backs $60m investment into US fintech firm Trumid

Hillhouse Capital founder Zhang Lei. Photographer: Paul Yeung/Bloomberg

New York City-based fintech firm and electronic trading platform for corporate bonds Trumid has secured investments from HK-based private equity firm Hillhouse Capital as part of a $60-million funding round.

With the investment, Hillhouse Capital will own a minority stake in Trumid.

Trumid’s existing investors including Singapore Exchange (SGX) and Arbor Ventures also participated in the round.

The growth capital from the transaction will be used to expand Trumid’s US corporate bond business and for protocol and product expansion.

Hillhouse’s strategic partnership further supports Trumid’s existing relationship with Singapore Exchange (SGX) in Asia, the company said in the statement.

Founded in 2014, Trumid claims to bring efficiency to credit trading through data, technology and innovative products. With a client network of over 425 buy-side and sell-side institutions, Trumid has experienced rapid growth in its US corporate bond business.

Trumid Market Center, the company’s electronic trading platform, provides corporate bond market professionals with direct access to liquidity and market intelligence.

“Hillhouse is a fantastic partner for Trumid at this stage of our life cycle,” said Mike Sobel, President of Trumid. “They have a stellar track record of supporting long-term growth and will help us improve and expand for years to come.”

“We have been highly impressed with Trumid’s ability to use data and technology in developing an outstanding corporate bond trading platform,” said Lei Zhang, Founder and CEO of Hillhouse. “We look forward to leveraging our network and operational expertise to help Trumid build out its presence globally.”

Hillhouse Capital, whose portfolio includes prominent firms like Airbnb, Uber, Meituan, Didi, Tencent, WuXi App, last year closed its fourth vehicle, Hillhouse Fund IV, at a record-breaking $10.6 billion.

According to Hillhouse Capital, the oversubscribed vehicle will pursue global opportunities across healthcare, consumer, technology and services sector, with a focus on Asia.