Clear Street Said to Close Pre-IPO Round at $12 Billion Value

(Bloomberg) -- Securities and derivatives broker Clear Street has closed an investment round at a $12 billion valuation, paving the way for an initial public offering, according to a person familiar with the matter.

The equity part of the round was led by fund managers Baillie Gifford and SBI Holdings, people with knowledge of the transaction said, asking not to be identified as the information isn’t public. On the debt side of the fundraise, BlackRock Inc. is among the investors in the senior notes, one of the people said.

Goldman Sachs Group Inc. and Morgan Stanley are advising on the potential IPO, and UBS Group AG is also working on it, the people said. The company could file paperwork for a listing as soon as next week, one of them said.

The fundraising and listing plan comes amid a trading bonanza that pushed markets revenues up 15% to $134 billion for Wall Street’s five largest banks, and boosted the bottom lines of firms such as Clear Street that compete with them.

Clear Street had net revenue of around $940 million in the 12 months to September 30, according to confidential documents seen by Bloomberg News. The company had net income of $89 million in 2024, up from an $18 million loss in 2023, the documents show.

Adjusted net capital held by Clear Street’s broker dealer arm rose 67% to $946 million in October, compared with the same month a year earlier, according to regulatory filings.

Deliberations are ongoing and details could still change, the people said. Spokespersons for Clear Street, Baillie Gifford, BlackRock, Goldman Sachs and UBS declined to comment. Representatives for Morgan Stanley and SBI Holdings didn’t immediately respond to requests for comment.

Clear Street is led by Executive Chairman Uriel Cohen, a trader and investor, and Chief Executive Officer Ed Tilly. Tilly is the former CEO of Cboe Global Markets Inc., the world’s largest options exchange.

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