Proceeds from the investment will be used for final development of the company’s flagship software application, the Kiodex Risk WorkbenchSM. The Warburg Pincus investment marks the third round of funding for Kiodex, Inc.
"Warburg Pincus’ investment validates our technology and supports our plan to become the leading global provider of web-based risk management solutions," said Kiodex CEO, R. Martin Chavez. "The first production release of the Kiodex Risk WorkbenchSM targets the commodity markets, specifically natural gas, crude oil, and refined petroleum products. With the support of Warburg Pincus, Kiodex will expand to support fully integrated enterprise risk, including earnings, logistics, supply chain, credit, interest rate and foreign exchange risk services."
The Kiodex Risk WorkbenchSM is a web-based, risk-management application that provides powerful pricing tools, market data, and financial reports to assist corporations in managing their exposure to market volatility. The application also helps companies comply with Financial Accounting Standards Board (FASB) Statement 133. Launch of the Kiodex Risk WorkbenchSM is scheduled for later this year.
"Our investment in Kiodex is founded on the company’s extraordinary management team, led by CEO and Wall Street veteran Marty Chavez whom we have known for many years," said Stewart Gross, Senior Managing Director of Warburg Pincus and a member of the Kiodex Board of Directors. "They have a distinguished track record serving the energy industry with technology solutions for managing risk. The company’s component-based technology makes it the first vendor of risk management solutions to be ‘built on the web,’ allowing seamless integration with trading systems and other core applications.”
In addition to directly licensing the Risk WorkbenchSM to individual companies, the system will also be available on EnronOnline, the world’s largest B2B e-commerce website, and on enymexSM, the online trading platform of the New York Mercantile Exchange scheduled for launch in June.
"The distinct advantage of partnering with the largest commodity exchange and the most successful B2B exchange is that trades executed on their respective platforms will be automatically fed into the Risk WorkbenchSM for analysis, eliminating the need for cumbersome manual deal entry," stated Raj Mahajan, president of Kiodex.
Kiodex also builds trading technology. The Kiodex Trade EngineTM is a real-time, Internet-based order-matching engine that powers major electronic exchanges. In September 2000, Kiodex was selected from among 50 competing vendors to develop the order-matching trade engine for enymexSM and to be the exclusive risk management provider for the new exchange.
About Kiodex, Inc.
Kiodex, Inc. is a technology and services company that provides risk management and trading expertise to all commodity market participants through easily accessible web-based products. Kiodex’s cost-effective and sophisticated risk management tools enable traders, managers, and corporate officers to easily and accurately understand, quantify and manage their risks.
The company’s flagship product, the Kiodex Risk WorkbenchSM, is integrated into the world’s leading commodity transaction platforms, increasing the transparency of those markets by making risk management tools easily accessible. For more information, please visit www.kiodex.com.
About Warburg Pincus
Warburg Pincus is one of the largest private equity firms in the world, with 50 partners and 95 professionals in the United States, Europe, Asia and Latin America investing across a variety of industries and company stages from venture capital start-ups to buyouts. Since 1971, Warburg Pincus has invested approximately $12 billion in over 400 companies. Warburg Pincus maintains a distinctively long-term and active investment style, with deep expertise in key industry sectors including information technology, financial services, media and communications, and healthcare, and a proprietary global network. For more information, please visit www.warburgpincus.com.