The $1.7T syndicated mortgage market and the multi-hundred-billion-dollar CLO market have lengthy operated by means of guide, time-consuming processes that create inefficiencies and restrict liquidity for institutional merchants. Regardless of these markets’ huge measurement and significance to the monetary system, digital buying and selling has been just about non-existent, with most transactions nonetheless carried out by means of cellphone calls and spreadsheets. Octaura addresses this problem by offering the primary complete digital buying and selling platform for syndicated loans and collateralized mortgage obligations (CLOs), combining real-time buying and selling capabilities with superior information analytics and connectivity options. The platform has demonstrated outstanding progress, capturing 4.6% of complete secondary mortgage buying and selling quantity inside simply two years of launch whereas increasing from 3 to 25 sellers and from 34 to 146 buy-side corporations. With the upcoming launch of their CLO buying and selling platform and continued innovation in information analytics, Octaura modernizes these crucial credit score markets fully.
AlleyWatch sat down with Octaura CEO and Co-Founder Brian Bejile to study extra concerning the enterprise, its future plans, and up to date $46.5M funding spherical.
Who have been your traders and the way a lot did you increase?
Octaura started as an initiative between Financial institution of America and Citi to deal with the challenges and limitations inside the syndicated mortgage and CLO markets. The corporate launched in 2022 with the backing of Moody’s Analytics, Citi, Financial institution of America, Credit score Suisse, Goldman Sachs, J.P. Morgan, Morgan Stanley and Wells Fargo.
We additionally just lately introduced $46.5M in a big funding spherical, backed by continued assist from founding traders plus six new traders – Barclays, Deutsche Financial institution, BNP Paribas, Apollo and Motive Companions, MassMutual Ventures, and OMERS Ventures.
Inform us concerning the services or products that Octaura gives.
Octaura is a platform for electronically buying and selling leveraged loans and collateralized mortgage obligations (CLOs). Our know-how brings collectively buying and selling, real-time information and deep analytics, enabling merchants to successfully entry liquidity and obtain finest execution.
What impressed the beginning of Octaura?
I began my profession at Citi as a CLO dealer doing loads of guide work. I used to be consistently on the lookout for methods to automate and make my life simpler, and because the leveraged loans and CLO markets turned a lot bigger, I spotted the whole {industry} wanted a distinct option to do issues.
My crew at Citi constructed an e-trading platform on Citi Velocity to automate buyer bid collections on CLO Bids Needed in Competitors (BWIC). Up till this level, most market individuals believed that we might by no means commerce electronically. We dispelled that after which it wasn’t a stretch that an agnostic, multi-dealer platform might exist.
From there, Citi mentioned, “That’s nice – if you happen to can create a platform, we’ll assist you”. Then I used to be in a position to get Financial institution of America excited concerning the thought, which led to conversations with the remainder of the founding traders, and Undertaking Octopus was born.
Octaura in the end launched in April 2022 aspiring to create the primary digital buying and selling platform for syndicated loans and CLOs.
How is Octaura totally different?
Octaura has reimagined the best way the syndicated mortgage and the CLO markets commerce as a result of it launched with assist and platform customers from each the purchase and promote sides since day 1.
It was constructed to unravel an industry-wide problem and tackle inefficiencies in these markets which have traditionally been guide and time-consuming. By way of Octaura, merchants should buy and promote loans and CLOs within the secondary market extra simply – one thing that has by no means been accessible earlier than. In consequence, individuals have higher accessibility, fewer errors and a extra streamlined buying and selling course of.
As well as, Octaura improves the supply and use of knowledge and analytics options for the mortgage and structured credit score markets – making a extra clear market broadly.
What market does Octaura goal and the way huge is it?
We work with institutional merchants on each the buyside and sellside and at the moment function within the U.S.
Our syndicated mortgage platform has gained important traction since its launch. Between April 2023 to April 2025, we grew our vendor community from 3 to 25 and expanded our buy-side participation from 34 to 146 corporations.
We’re persevering with to develop quick – within the first quarter of 2024, Octaura reached 1% of secondary mortgage buying and selling quantity, and only one 12 months later, captured 4.6% of complete market quantity, underscoring the platform’s broader impression on the mortgage market. Capturing this proportion of buying and selling exercise within the mortgage market on our platform so shortly displays our dedication to shoppers and the urge for food for know-how within the house.
What’s your corporation mannequin?
Octaura’s mortgage and CLO buying and selling platform is a transaction-based payment mannequin. Octaura’s information and analytics product choices are subscription-based.
How are you getting ready for a possible financial slowdown?
In periods of financial uncertainty, Octaura is a superb place for institutional merchants to supply liquidity. We noticed this firsthand throughout April’s interval of heightened volatility because of the tariffs. Octaura was a useful resource for merchants trying to handle danger throughout financial uncertainty and supply liquidity from the market, leading to elevated buying and selling volumes on the platform.
What was the funding course of like?
We have been thrilled to obtain continued backing from our founding traders and welcome a gaggle of recent strategic traders who imagine in Octaura’s imaginative and prescient. This marks an thrilling new chapter for Octaura.
What are the largest challenges that you just confronted whereas elevating capital?
There may be merely so much to do if you’re elevating capital with over a dozen traders. Getting everybody aligned, whereas additionally assembly the wants of our shoppers and constructing an awesome product can actually be difficult, however we’ve the crew in place to do it.
What elements about your corporation led your traders to write down the verify?
We’re extraordinarily strategic with our targets and targeted on addressing consumer challenges. Plus, the platform’s confirmed use case inspired traders to assist our progress.
We’re extraordinarily strategic with our targets and targeted on addressing consumer challenges. Plus, the platform’s confirmed use case inspired traders to assist our progress.
What are the milestones you propose to realize within the subsequent six months?
This funding will permit Octaura to digitize the credit score market by means of continued innovation over the following a number of months, together with:
Proceed to penetrate market share within the leveraged mortgage market
Launch its CLO buying and selling platform
Construct revolutionary and significant information and analytic options for the market
What recommendation are you able to provide firms in New York that shouldn’t have a contemporary injection of capital within the financial institution?
Be nimble together with your crew and don’t scale too shortly. Since inception, we’ve targeted on hiring strategically based mostly on enterprise wants and we really feel fortunate that New York has a deep pool of unbelievable expertise.
New York additionally affords an unbelievable group of like-minded founders, artistic entrepreneurs, and tech-forward thinkers. After I’m feeling caught, I prefer to faucet into my broader community for some contemporary perspective and inspiration.
The place do you see the corporate going now over the close to time period?
We’re targeted on launching the platform for our second asset class – CLOs. There are comparable challenges within the CLO market, so we’ve developed an answer that mixes digital execution, superior information, deep analytics and a collection of connectivity for sellside and buyside individuals. Having a view of each the mortgage and CLO markets on the platform could be very complementary.
What’s your favourite spring vacation spot in and across the metropolis?
We prefer to recurrently assist our native Penn District institutions for enterprise dinners – particularly if there’s an outside patio concerned!
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