MIH Announces Major Investment for Growth and Development
Miami International Holdings, Inc. (MIH), a leading technology-driven entity in the development and management of regulated financial markets, has secured a significant $100 million investment from Warburg Pincus, a global growth investment firm. This strategic partnership marks a pivotal moment for MIH as it seeks to enhance its operations and expand its global footprint.
Investment to Drive Expansion and Development
The funds from Warburg Pincus will be instrumental in accelerating MIH’s next phase of global expansion. This includes the construction and fit-out of a state-of-the-art physical trading floor in Miami, Florida, for MIAX Sapphire, MIH’s fourth national securities exchange focused on U.S. multi-listed options. Scheduled to launch its electronic exchange on August 12, 2024, MIAX Sapphire’s trading floor is anticipated to commence operations in 2025.
MIAX Sapphire will be the first national securities exchange to establish a physical presence in Miami. The new facility will boast an advanced trading floor, dedicated office space for MIAX staff and market participants, along with state-of-the-art conference and media facilities.
Enhancing Strategic Partnerships and Technological Advancements
Thomas P. Gallagher, Chairman and CEO of MIH, expressed enthusiasm about the new partnership: “We are excited to welcome Warburg Pincus as a strategic ally and look forward to leveraging their extensive expertise and global network in financial services. This investment will enable us to strengthen our strategic alliances in financial futures and proprietary products, and pursue acquisition opportunities both in the U.S. and internationally, driving our growth.”
The investment will also support the expansion of MIH’s agricultural and financial futures businesses, specifically through its U.S. futures exchanges, the Minneapolis Grain Exchange (MGEX) and MIAXdx. This includes the development of new matching engine and clearing technology using MIH’s proprietary technology. Moreover, it will facilitate MIH’s entry into international markets, fostering the creation and trading of new financial products.
Warburg Pincus’s Confidence in MIH’s Growth Potential
Gaurav Seth, Managing Director and Head of Capital Solutions at Warburg Pincus, commented on the investment: “Tom Gallagher and his team at MIAX have successfully established a technology-driven network of exchanges that set new benchmarks in the U.S. options trading sector. Our investment, coupled with the potential for future funding, underscores our confidence in MIAX’s trajectory and the opportunities that lie ahead.”
Lee Becker, Managing Director at Warburg Pincus, added: “Our investment supports MIAX at a crucial juncture, enhancing its capacity to expand and innovate across multiple asset classes. We are excited about MIAX’s progress and look forward to their continued growth and success.”
Board Updates and Advisory Roles
As part of the agreement, Lee Becker will join MIH’s board of directors, and Mark Messing, Vice President at Warburg Pincus, will attend board meetings as a visitor. Piper Sandler & Co. acted as financial advisor to MIH, while Broadhaven Capital Partners advised Warburg Pincus on the transaction. Legal counsel included Davis Polk & Wardwell, LLP for Warburg Pincus and Cleary Gottlieb Steen & Hamilton LLP for MIH. Additional counsel included Gallagher, Briody & Butler for MIH, Appleby (Bermuda) Limited for Warburg Pincus, and BeesMont Law Limited for The Bermuda Stock Exchange (BSX).
