Plurilock Taps Clear Street: How A Modern Investment Approach Will Shape The Cybersecurity Space
FULL DISCLOSURE: This is sponsored content for Plurilock.
As Plurilock Security (TSXV: PLUR) embarks on its strategic review of U.S. market options, its choice of financial advisor has sparked interest in the financial community. As a key player in the cybersecurity industry with deep ties to U.S. government agencies, the firm has engaged Clear Street Investment Banking to guide its next steps.
The partnership marks a significant move for Plurilock, reflecting the company’s ambitions to strengthen its U.S. presence and capitalize on the opportunities within the ever-evolving tech sector. But who exactly is Clear Street, and why is this young, rapidly growing firm seen as the right partner for Plurilock?
Meteoric rise: brokerage to investment banking
Clear Street is not your typical financial institution. Founded in 2018, the New York-based firm set out to modernize the brokerage ecosystem with a focus on efficiency, risk minimization, and cost reduction through technology.
At its core, Clear Street has built a proprietary, cloud-native clearing and custody system—a stark contrast to the legacy infrastructure still used by many of its competitors. This technological edge has allowed Clear Street to quickly establish itself as a diversified financial services firm, attracting a broad range of institutional clients and significantly increasing its daily transaction volume.
In a relatively short span, Clear Street has made bold moves to expand its services, culminating in its entry into the investment banking sector. This strategic expansion was announced in June 2023, when Clear Street revealed the hiring of a team of seasoned investment bankers from notable firms such as JonesTrading, Bridgeway Capital Partners, and EF Hutton. These industry veterans are spearheading Clear Street’s foray into investment banking, with an initial focus on the healthcare sector—a choice driven by the relative stability and growth potential of this market.
Though new to the investment banking scene, Clear Street has already built an impressive track record of raising significant funds and executing high-profile transactions, which include:
- Acting as the financial advisor for the pending merger between Triller and AGBA, a deal valued at $4 billion, expected to significantly impact the digital media landscape.
- Acting as the sole bookrunner for AA Mission Acquisition Corp’s $300 Million SPAC Initial Public Offering, underscoring its growing role in the increasingly popular special-purpose acquisition company (SPAC) market.
- Acting as joint bookrunner for Black Spade Capital’s $150 Million Initial Public Offering, a move that marked one of the most significant public offerings in recent months.
- Advising on the $120-million acquisition of Endeavor Entities by Vivakor, showcasing its expertise in complex M&A transactions.
- Facilitating the acquisition of Instinet’s Fox River Algorithmic Trading Business, further expanding its footprint in the trading and financial technology sectors.
Clear Street’s approach to investment banking is underpinned by the same principles that have driven its success in brokerage: leveraging modern technology to streamline operations and enhance client service.
“We are not encumbered by legacy systems, processes, and coverage models. The investment banking team is also excited about using artificial intelligence tools to build models and for their analysis,” said Clear Street COO Andy Volz.
Cybersecurity foray
For Plurilock, Clear Street represents more than just a financial advisor; it embodies a partner that shares its forward-looking ethos. Plurilock’s business, heavily intertwined with U.S. government agencies, demands a financial partner capable of navigating the complexities of the U.S. capital markets while understanding the nuances of the technology sector.
With 89% of Plurilock’s business conducted in the U.S., including substantial contracts with the U.S. Federal Government, aligning with a firm like Clear Street, which has its pulse on both technological innovation and financial strategy, is a natural fit.
Clear Street’s rapid growth and expansion plans mirror Plurilock’s own trajectory. In recent years, Plurilock has strategically positioned itself as a leader in cybersecurity, with a platform that integrates hardware and software sales, managed services, and AI-driven solutions.
The company’s recent addition of high-profile American leaders to its advisory board, including former CrowdStrike Board Member Joe Sexton and former White House Lawyer Bryan Cunningham, underscores its commitment to deepening its U.S. ties. By engaging Clear Street, Plurilock is signaling its intent to leverage these connections and maximize its growth potential in the lucrative U.S. market.
Plurilock CEO Ian L. Paterson articulated the strategic rationale behind the partnership: “Plurilock Security is at the forefront of protecting organizations against evolving cyber threats. By engaging with Clear Street, we aim to explore avenues that will not only bolster our visibility but also attract a wider investor base. We believe that U.S. capital markets and acquisitions strategies better support Plurilock’s growth and valuing the platform properly with growth-focused investors who will support it.”
Shaping the cybersecurity space
Clear Street’s vision for the future is nothing short of ambitious. The firm’s ultimate goal is to create a single platform capable of handling every asset class, in every country, and in any currency.
In June 2023, the firm acquired React Consulting Services and its cloud-native futures clearing platform, BASIS, signaling its intention to expand into the futures market. Clear Street is also eyeing international expansion, with plans to enter the UK market pending regulatory approval.
The firm’s growth is backed by substantial capital, including a $270 million investment from Prysm Capital, which was part of a $435 million Series B funding round that valued the company at $2 billion. The investment was the second round of capital injection into Clear Street by Prysm, following a $165 million investment in 2022. Prysm notably was founded by three former BlackRock directors in 2019.
As Plurilock navigates its strategic review, Clear Street’s expertise and resources will play a crucial role in shaping the company’s future. Whether through mergers and acquisitions, capital formation, or other strategic initiatives, the partnership between these two forward-thinking companies is poised to unlock significant value for Plurilock’s shareholders and position the company for continued success in the ever-competitive cybersecurity landscape.
In an industry where both technology and financial acumen are critical, the collaboration between Plurilock and Clear Street is a promising development that could set the stage for transformative growth and innovation.
FULL DISCLOSURE: Plurilock Security is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Plurilock Security. The author has been compensated to cover Plurilock Security on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
