Financial Technologies Monthly Market UpdateMarch 2019

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Table of Contents

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FinTech Summit 4

Market Valuations 13

M&A Trends 20

Capital Raising Trends 22

US IPO Market Update 27

Banks, Capital Markets and FinTech US Public Offerings 28

Index Performance 7

Vikas Shah – Institutional Investor’s Fintech Finance 40 (2018 & 2019)

Click here to read the full coverage

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S A V E T H E D AT EThursday, May 23rd, 2019

11th Annual FinTech SummitConvene Conference Center I 730 Third Avenue, New York, NY 10017

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If you're interested in attending our 11th Annual FinTech Summit, please click here to fill out a brief form.For further information, please contact your Rosenblatt representative or email fts@rblt.com

Sample companies in our FinTech Summit history

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Capital Markets

Payments

Lending & CreditPersonal Finance & Investment Mgmt.

InsurTechInst. SW Solutions

Blockchain AI / ML Cyber Security

Rosenblatt’s annual Financial Technology Summit has showcased more than 150 fast-growing FinTech companies in the past decade attracting senior executives from the financial services and the institutional investment community

FTS 2018 – May 2018 – Convene conference center, NY

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FIRESIDE CHAT – Mike NovogratzThe Institutionalization of Digital Assets

INSURTECHAscribing a Premium to Trust and Simplicity

BLOCKCHAINHashing Out a New Paradigm

CYBER-RESILIENCYCracked door today. Demolished house tomorrow

KEYNOTE – Cathie WoodFinTech – Transforming the Business of Finance and Insurance

Cap Weighted Price Return Index Performance – Payments (LTM)

7Source: Bloomberg, Capital IQ, Updated on 3/01/2019Note: The index is made up of companies mentioned under each of the above buckets in subsequent slides except, the index does not adjust for any new companies added and excludes old companies delisted in last twelve months

% ∆ YoY ↑ 4.7% 23.6% 28.4% 22.2%

% ∆ MoM ↑ 4.6% 9.1% 6.7% 6.4%

-30%

-20%

-10%

0%

10%

20%

30%

40%

3/1/18 4/1/18 5/1/18 6/1/18 7/1/18 8/1/18 9/1/18 10/1/18 11/1/18 12/1/18 1/1/19 2/1/19 3/1/19

^SPX Card Networks Payment Infrastructure P2P Transfer and Remittances

% ∆ YoY ↑ 4.7% -14.9% 7.7% -4.2% -5.9%

% ∆ MoM ↑ 4.6% 3.2% 3.5% 1.7% 4.0%

Cap Weighted Price Return Index Performance – Capital Markets (LTM)

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-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

3/1/18 4/1/18 5/1/18 6/1/18 7/1/18 8/1/18 9/1/18 10/1/18 11/1/18 12/1/18 1/1/19 2/1/19 3/1/19

^SPX Broker Dealers and Market Makers Large Exchanges Regional Exchanges Retail / e - Brokers

Source: Bloomberg, Capital IQ, Updated on 3/01/2019Note: The index is made up of companies mentioned under each of the above buckets in subsequent slides except, the index does not adjust for any new companies added and excludes old companies delisted in last twelve months

Cap Weighted Price Return Index Performance – Software and Technology (LTM)

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% ∆ YoY ↑ 4.7% 15.1% -13.4% 5.6%

% ∆ MoM ↑ 4.6% 8.5% -1.3% 13.2%

-30%

-20%

-10%

0%

10%

20%

3/1/18 4/1/18 5/1/18 6/1/18 7/1/18 8/1/18 9/1/18 10/1/18 11/1/18 12/1/18 1/1/19 2/1/19 3/1/19

^SPX Financial Media Trading Technology Outsourced / Backend Solutions

Source: Bloomberg, Capital IQ, Updated on 3/01/2019Note: The index is made up of companies mentioned under each of the above buckets in subsequent slides except, the index does not adjust for any new companies added and excludes old companies delisted in last twelve months

-36%

-31%

-26%

-21%

-16%

-11%

-6%

-1%

4%

9%

3/1/18 4/1/18 5/1/18 6/1/18 7/1/18 8/1/18 9/1/18 10/1/18 11/1/18 12/1/18 1/1/19 2/1/19 3/1/19

^SPX Alternative Lending Global Diversified Banks

Cap Weighted Price Return Index Performance – Banks (LTM)

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% ∆ YoY ↑ 4.7% -0.5% -11.9%

% ∆ MoM ↑ 4.6% 8.6% 0.6%

Source: Bloomberg, Capital IQ, Updated on 3/01/2019Note: The index is made up of companies mentioned under each of the above buckets in subsequent slides except, the index does not adjust for any new companies added and excludes old companies delisted in last twelve months

12.1 x

14.4 x

9.2 x

17.1 x

21.6 x

27.1 x

23.6 x

27.7 x

30.5 x

6.2 x

28.8 x

29.4 x

Global Diversified Banks

Alternative Lending

Broker Dealers and Market Makers

Regional Exchanges

Retail / E- Brokers

Global Exchanges

Trading Technology

Outsourced / Backend Solutions

Financial Data / Information Providers

P2P Transfer and Remittances

Payment Infrastructure

Card Networks

Ap

plic

atio

n

Soft

war

ePa

ymen

tsLe

nd

ers

Cap

ital

Mar

kets

2018 A/E 2019 EConsensus P / E

11

11.0 x

15.2 x

12.5 x

17.3 x

14.9 x

22.1 x

21.6 x

23.0 x

25.0 x

9.5 x

24.6 x

23.1 x

Global Diversified Banks

Alternative Lending

Broker Dealers and Market Makers

Regional Exchanges

Retail / E- Brokers

Global Exchanges

Trading Technology

Outsourced / Backend Solutions

Financial Data / Information Providers

P2P Transfer and Remittances

Payment Infrastructure

Card Networks

Source: Bloomberg, Capital IQ, Updated on 3/01/2019

9%, 12 x, $6,785

15%, 14 x, $1,724

12%, 27 x, $16,285

0%, 17 x, $1,067

16%, 22 x, $2,806

8%, 24 x, $496

16%, 28 x, $6,189

6%, 30 x, $9,019 0%, 29 x, $8,672

12%, 29 x, $162,490

10 x

15 x

20 x

25 x

30 x

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

Revenue Growth vs. Price to Earnings Ratio

REGIONAL EXCHANGES

RETAIL E-BROKERS

CARD NETWORKS

PAYMENT INFRASTRUCTURE

OUTSOURCED/BACKEND SOLUTIONS

FINANCIAL DATA / INFO PROVIDERS

Pr

ice

/ E

ar

nin

g R

at

io

1 R e v e n u e Y e a r G r o w t h Note: Every bubble represents (1 Revenue Year Growth %, 2018 E Median P/E ratios of the universe, Median Market Capitalization of the universe). The size of the bubble represents Median Market CapitalizationAlternative Lending, & P2P Transfer and Remittances, Trading Technology, Global Diversified Banks excluded because of high / low range Source: Capital IQ, Bloomberg , Updated on 3/1/2019 12

TRADING TECHNOLOGY

ALTERNATIVE LENDING

GLOBAL DIVERSIFIED BANKS

GLOBAL EXCHANGES

LTM 2018 A/E 2019 E LTM 2018 A/E 2019 E LTM 2018 A/E 2019 E LTM P/BDebt /

EquityROE 1 Year

5 Year

CAGR

Banks n/a n/a n/a n/a n/a n/a 11.8x 15.1x 11.8x 1.3x 81% 12% 10% 5%

CapitalMarkets n/a n/a n/a n/a n/a n/a 19.4 21.9 17.4 2.7 20% 15% 13% 9%

ApplicationSoftware 5.0 4.8 4.7 17.9 18.3 17.6 26.4 29.2 23.8 5.1 21% 21% 11% 9%

Payments 5.1 5.8 5.3 n/a 18.2 17.4 29.0 28.3 24.4 5.8 84% 16% 7% 7%

Sub - Sector LTM 2018 A/E 2019 E LTM 2018 A/E 2019 E LTM 2018 A/E 2019 E LTM P/BDebt /

EquityROE 1 Year

5 Year

CAGR

Global Diversified Banks 2.8x 3.8x 3.7x 5.3x 9.8x 11.2x 11.6x 12.1x 11.0x 1.0x 139% 10% 9% 1%

Alternative Lending 3.5x 4.9x 4.3x 12.7x 31.2x 14.8x 15.9x 14.4x 15.2x 1.5x 170% 12% 15% 41%

Global Exchanges 9.2x 10.1x 9.3x 15.4x 17.0x 15.4x 26.7x 27.1x 22.1x 3.7x 23% 14% 12% 9%

Regional Exchanges 6.4x 6.6x 6.3x 12.9x 11.9x 11.4x 17.3x 17.1x 17.3x 3.2x 0% 20% 0% 2%

Broker Dealers and Market Makers 1.4x 1.5x 1.3x 9.5x 9.9x 7.0x 10.8x 9.2x 12.5x 2.3x 53% 17% 15% 12%

Retail / E- Brokers 4.5x 5.3x 4.6x 10.0x 13.1x 9.4x 16.8x 21.6x 14.9x 2.4x 33% 16% 16% 9%

Trading Technology 2.3x 2.6x 2.3x 13.4x 15.7x 13.3x 30.3x 23.6x 21.6x 3.2x n/a 16% 8% 9%

Outsourced / Backend Solutions 6.6x 6.5x 6.5x 16.5x 23.9x 20.0x 26.8x 27.7x 23.0x 7.0x 4% 17% 16% 12%

Financial Data / Information Providers 4.9x 6.2x 5.0x 19.8x 18.5x 17.5x 25.8x 30.5x 25.0x 6.2x 35% 23% 6% 8%

Payment Infrastructure 5.2x 6.0x 5.5x 16.7x 17.2x 16.8x 30.1x 28.8x 24.6x 5.8x 87% 12% 0% 7%

P2P Transfer and Remittances 1.9x 1.9x 1.8x 11.4x 7.6x 7.4x 9.6x 6.2x 9.5x 7.5x n/a 13% 1% 0%

Card Networks 8.7x 10.1x 9.0x 16.1x 27.6x 23.4x 21.0x 29.4x 23.1x 7.3x 175% 36% 12% 9%

Growth %

Growth %

TEV / EBITDA Price / EarningsTEV / Sales

TEV / Sales TEV / EBITDA Price / Earnings

Market Valuations

Source: Capital IQ, Bloomberg , Updated on 3/1/2019Note: N/A denotes negative multiple or oddly high multiple or the multiple is not availableNote: 2018 multiples include actual and estimated figures for companies that haven’t reported Q4’18

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Banks

Application Software

Payments

Capital Markets

Company% change

LTMMarket Cap

Enterprise

ValueLTM 2018 A/E 2019 E LTM 2018 A/E 2019 E LTM 2018 A/E 2019 E LTM P/B

Debt /

EquityROE 1 Year

5 Year

CAGR

IRESS Market Technolgy 19% 1,474 1,597 4.6x 4.8x 4.7x 18.0x 18.4x 17.8x 30.3x 25.9x 26.7x 4.9x n/a 16% 8% 13%

Fidessa n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 22% 7% 5%

First Derviatives -43% 736 767 2.8 3.3 2.8 19.6 18.1 15.7 46.2 31.9 27.3 4.0 n/a 8% 23% 27%

Linedata Services -14% 257 332 1.6 1.5 1.7 6.4 6.5 6.9 10.5 12.8 11.5 2.0 n/a 21% -3% 2%

StatPro -36% 99 130 1.8 1.9 1.8 8.7 13.3 10.9 n/a 21.2 16.5 2.5 n/a 2% 31% 9%

Median -25% 2.3 2.6 2.3 13.4 15.7 13.3 30.3 23.6 21.6 3.2 n/a 16% 8% 9%

Broadridge 2% 11,740 12,685 2.9x 3.0x 2.9x 16.5x 16.0x 13.9x 26.8x 27.7x 22.9x 10.5x 106% 40% 5% 12%

SEI Investments -27% 8,130 7,340 4.5 4.8 4.5 14.1 15.0 13.8 16.4 22.6 16.8 5.1 0% 33% 6% 8%

SS&C 27% 15,714 23,803 7.0 14.2 6.9 25.1 34.5 18.8 n/a 32.4 23.0 3.6 178% 6% 104% 37%

Computershare 0% 6,682 8,156 3.6 3.7 3.5 11.9 14.1 12.5 17.2 20.6 17.9 4.5 n/a 28% 9% 3%

Docusign n/a 9,302 9,189 14.1 n/a 17.7 n/a n/a n/a n/a n/a n/a 33.9 53% n/a 36% n/a

SimCorp 59% 3,680 3,626 8.0 8.6 8.4 n/a 32.6 30.4 39.5 44.4 41.9 18.7 0% 54% 11% 11%

Guidewire 32% 3,394 3,052 6.3 6.5 6.1 n/a 23.3 20.6 27.5 26.5 24.4 4.2 4% 17% 12% 39%

Envestnet 13% 2,966 3,136 3.9 4.6 3.9 34.2 24.6 20.0 n/a 47.3 32.2 4.4 47% 1% 19% 27%

Blackline 18% 2,851 2,722 12.0 15.6 12.0 n/a n/a 93.9 n/a n/a n/a 8.8 0% -9% 29% n/a

Coupa Software 116% 5,696 5,461 22.8 41.5 30.0 n/a n/a n/a n/a n/a n/a 18.3 0% -19% 40% n/a

Median 18% 6.6 6.5 6.5 16.5 23.9 20.0 26.8 27.7 23.0 7.0 4% 17% 16% 12%

Growth %Market Data TEV / Sales TEV / EBITDA Price / Earnings

Market Valuations – Software & Technology

T R A D I N G T E C H N O L O G Y

O U T S O U R C E D / B A C K E N D S O L U T I O N S

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Thomson Reuters 43% 27,223 27,708 5.0x 2.4x 5.0x 19.8x 8.1x 21.0x n/a 19.8x n/a 3.0x 35% 36% -51% -15%

S&P Global 7% 50,177 53,580 8.6 9.0 8.5 17.9 18.5 17.1 25.9 30.4 23.8 80.0 159% 293% 3% 6%

Moody's 5% 33,553 37,036 8.3 9.0 8.2 18.0 18.6 17.2 25.7 29.2 23.7 51.2 n/a n/a 6% 8%

MSCI 33% 16,039 17,710 12.4 13.9 12.4 22.9 26.9 22.9 33.2 49.7 36.2 n/a n/a n/a 13% 9%

Gartner 27% 13,003 15,128 3.8 4.3 3.8 29.4 21.7 21.4 n/a 42.0 38.7 15.3 249% 13% 20% 17%

FactSet 17% 9,019 9,396 6.8 7.4 6.8 21.6 22.0 20.4 32.6 30.6 26.7 16.7 106% 48% 11% 9%

TransUnion 13% 12,062 15,976 6.9 8.3 6.8 19.5 21.5 17.5 42.9 35.0 26.2 6.4 201% 15% 20% 14%

Dun & Bradstreet 16% 5,382 6,501 3.6 3.7 3.7 11.9 12.9 12.5 23.0 20.2 17.5 n/a n/a n/a 2% 1%

Morning Star 35% 5,336 5,010 4.9 n/a n/a 16.0 n/a n/a 29.2 n/a n/a 5.7 7% 21% 12% 8%

Ebix -35% 1,651 2,193 4.4 6.2 4.5 14.1 17.6 13.4 18.3 17.3 14.7 3.4 119% 23% 37% 19%

Forrester 24% 913 768 2.1 2.3 2.2 24.4 18.3 17.2 n/a 41.8 33.4 6.2 0% 9% 6% 4%

The Value Line 8% 193 169 4.7 n/a n/a 37.6 n/a n/a 11.4 n/a n/a 4.2 0% 40% 4% 0%

The Street 69% 111 68 1.2 1.1 1.3 36.4 9.8 158.8 2.0 n/a 11.9 1.8 0% n/a -2% 4%

Median 17% 4.9 6.2 5.0 19.8 18.5 17.5 25.8 30.5 25.0 6.2 35% 23% 6% 8%

F I N A N C I A L D A T A / I N F O R M A T I O N P R O V I D E R S

Source: Capital IQ, Bloomberg , Updated on 3/1/2019Note: N/A denotes negative multiple or oddly high multiple or the multiple is not availableNote: 2018 multiples include actual and estimated figures for companies that haven’t reported Q4’18

Company% change

LTMMarket Cap

Enterprise

ValueLTM 2018 A/E 2019 E LTM 2018 A/E 2019 E LTM 2018 A/E 2019 E LTM P/B

Debt /

EquityROE 1 Year

5 Year

CAGR

Visa 24% 300,043 306,258 14.4x 16.3x 14.5x 21.9x 23.4x 20.7x 28.3x 40.2x 31.4x 10.5x 49% 38% 12% 12%

MasterCard 31% 233,138 231,188 15.5 18.6 15.5 29.9 31.8 26.0 40.4 49.7 35.2 43.4 106% 108% 20% 12%

American Express 14% 91,843 125,921 2.9 3.8 3.1 10.2 n/a n/a 13.7 18.6 14.7 4.1 276% 34% 11% 4%

Discover Financial -4% 23,591 38,090 3.0 3.9 3.6 6.2 n/a n/a 9.2 12.1 9.2 2.3 245% 26% 11% 7%

Median 19% 8.7 10.1 9.0 16.1 27.6 23.4 21.0 29.4 23.1 7.3 175% 36% 12% 9%

PayPal 26% 115,913 108,802 7.0x 8.4x 7.0x 36.6x 32.0x 27.0x n/a n/a 41.2x 7.5x n/a 13% 18% 18%

Western Union -7% 7,938 10,398 1.9 1.9 1.8 7.5 7.6 7.4 9.6 10.0 9.5 n/a n/a n/a 1% 0%

Moneygram International Inc. -76% 138 1,078 0.7 0.7 0.7 11.4 3.9 4.5 n/a 2.4 3.4 n/a n/a n/a -10% 0%

Median -7% 1.9 1.9 1.8 11.4 7.6 7.4 9.6 6.2 9.5 7.5 n/a 13% 1% 0%

Fidelity National Information 13% 35,001 43,290 5.1x 4.7x 5.1x 15.0x 14.2x 13.7x 42.0x 24.6x 20.8x 3.5x 87% 8% -3% 7%

Fiserv 22% 33,829 39,373 6.8 6.9 6.8 17.1 19.2 17.9 29.7 34.0 27.7 14.8 260% 47% 2% 4%

WorldPay 20% 30,362 38,420 9.8 18.1 9.8 26.8 37.9 20.4 n/a 29.2 24.4 3.1 75% 0% -3% 13%

Square, Inc 68% 32,510 32,293 9.8 33.4 20.5 n/a 236.9 127.5 n/a n/a n/a 28.8 81% -4% 49% 43%

Global Payments 18% 20,723 25,538 7.6 6.7 6.0 20.3 19.6 16.8 46.0 28.1 23.2 5.2 120% 12% -15% 7%

First Data 67% 24,164 41,285 4.3 5.6 4.8 13.8 13.6 12.6 23.9 17.1 18.4 5.8 233% 27% -21% -3%

Total System 9% 16,849 20,251 5.0 4.4 5.0 16.4 17.0 15.0 30.1 28.5 21.3 6.7 149% 24% -18% 14%

Jack Henry 14% 10,323 10,297 6.5 7.0 6.7 18.6 19.8 19.3 33.4 39.4 37.2 7.4 0% 24% 7% 6%

Euronet 63% 7,022 6,609 2.6 2.9 2.6 14.2 15.9 13.4 31.1 29.7 24.7 5.7 49% 19% 13% 12%

ACI Worldwide 43% 3,841 4,364 4.3 4.3 4.1 19.5 17.2 16.2 n/a 47.0 40.3 3.7 62% 8% -1% 3%

Bottomline Technologies 36% 2,196 2,204 5.3 6.0 5.5 45.8 26.8 23.0 n/a 46.9 40.3 5.7 30% 5% 13% 9%

Evo Payments n/a 2,183 2,762 n/a n/a 4.8 n/a n/a 18.8 n/a n/a 48.4 47.8 380% n/a n/a n/a

Evertec 75% 2,063 2,535 5.6 6.4 5.6 13.5 14.6 12.0 23.9 19.6 15.4 9.8 243% 49% 11% 5%

Cardtronics 34% 1,403 2,202 1.6 1.5 1.6 8.8 6.6 7.7 n/a 10.5 15.2 3.7 217% 1% -11% 9%

Cass Information 6% 762 582 3.9 n/a n/a 11.3 n/a n/a 25.5 n/a n/a 3.4 0% 13% 8% 5%

I3 Verticals n/a 555 682 n/a n/a 6.2 n/a n/a 22.7 n/a n/a 37.6 13.7 43% n/a 22% n/a

Median 28% 5.2 6.0 5.3 16.7 17.2 16.5 30.1 28.8 24.4 5.7 100% 12% -1% 7%

Growth %Market Data TEV / Sales TEV / EBITDA Price / Earnings

C A R D N E T W O R K S

Market Valuations – Payments

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P 2 P T R A N S F E R S A N D R E M I T T A N C E S

P A Y M E N T I N F R A S T R U C T U R E

Source: Capital IQ, Bloomberg , Updated on 3/1/2019Note: N/A denotes negative multiple or oddly high multiple or the multiple is not availableNote: 2018 multiples include actual and estimated figures for companies that haven’t reported Q4’18

Company% change

LTMMarket Cap

Enterprise

ValueLTM 2018 A/E 2019 E LTM 2018 A/E 2019 E LTM 2018 A/E 2019 E LTM P/B

Debt /

EquityROE 1 Year

5 Year

CAGR

CME 14% 65,330 68,330 15.9x 18.8x 16.0x 23.9x 27.3x 22.2x 31.8x 38.4x 27.0x 2.5x 17% 8% 18% 8%

ICE 7% 43,882 50,700 10.2 11.0 10.2 16.0 17.2 15.9 22.3 26.2 21.6 2.6 43% 12% 7% 26%

Hong Kong Exch. & Clearing Ltd. -4% 43,883 30,723 16.9 18.4 15.3 20.5 25.4 20.3 36.7 45.9 36.5 8.5 5% 24% 23% 12%

Deutsche Boerse 4% 24,401 26,040 8.0 8.5 8.5 15.4 14.5 14.1 24.4 22.5 21.0 4.3 46% 19% 13% 8%

London Stock Exchange 19% 21,586 22,854 8.0 8.5 8.4 16.4 17.6 16.7 33.6 30.2 27.5 4.9 n/a 15% 9% 20%

Nasdaq 16% 15,217 18,235 7.2 7.5 7.2 14.7 14.7 13.9 33.3 22.0 19.0 2.8 70% 8% 5% 6%

BM&F Bovespa SA 25% 17,354 16,264 12.2 13.3 12.5 17.7 23.2 18.1 30.0 28.0 25.3 2.6 11% 8% 32% 18%

CBOE -14% 10,736 11,650 9.6 10.8 9.7 14.5 17.9 14.2 25.5 28.2 19.8 3.3 28% 13% 22% 16%

Japan Exchange Group 10% 9,523 8,661 7.7 8.0 7.8 11.6 13.3 12.2 20.3 21.9 20.9 3.9 19% 19% 12% 11%

Australian Stock Exchange 21% 9,617 6,748 10.7 11.2 11.1 14.2 14.6 14.8 27.9 28.3 28.0 3.5 n/a 12% 8% 6%

Singapore Exchange 5% 6,231 5,731 8.9 9.4 9.0 15.5 16.8 15.9 22.6 23.6 22.5 8.8 0% 39% 5% 3%

Euronext -4% 4,344 4,216 5.8 6.3 6.1 10.8 11.5 10.5 16.9 16.9 16.0 4.8 63% 29% 16% 5%

Median 8% 9.2 10.1 9.3 15.4 17.0 15.4 26.7 27.1 22.1 3.7 23% 14% 12% 9%

CME 14% 65,330 68,330 15.9x 18.8x 16.0x 23.9x 27.3x 22.2x 31.8x 38.4x 27.0x 2.5x 17% 8% 18% 8%

ICE 7% 43,882 50,700 10.2 11.0 10.2 16.0 17.2 15.9 22.3 26.2 21.6 2.6 43% 12% 7% 26%

Hong Kong Exch. & Clearing Ltd. -4% 43,883 30,723 16.9 18.4 15.3 20.5 25.4 20.3 36.7 45.9 36.5 8.5 5% 24% 23% 12%

Deutsche Boerse 4% 24,401 26,040 8.0 8.5 8.5 15.4 14.5 14.1 24.4 22.5 21.0 4.3 46% 19% 13% 8%

London Stock Exchange 19% 21,586 22,854 8.0 8.5 8.4 16.4 17.6 16.7 33.6 30.2 27.5 4.9 n/a 15% 9% 20%

Nasdaq 16% 15,217 18,235 7.2 7.5 7.2 14.7 14.7 13.9 33.3 22.0 19.0 2.8 70% 8% 5% 6%

BM&F Bovespa SA 25% 17,354 16,264 12.2 13.3 12.5 17.7 23.2 18.1 30.0 28.0 25.3 2.6 11% 8% 32% 18%

CBOE -14% 10,736 11,650 9.6 10.8 9.7 14.5 17.9 14.2 25.5 28.2 19.8 3.3 28% 13% 22% 16%

Japan Exchange Group 10% 9,523 8,661 7.7 8.0 7.8 11.6 13.3 12.2 20.3 21.9 20.9 3.9 19% 19% 12% 11%

Australian Stock Exchange 21% 9,617 6,748 10.7 11.2 11.1 14.2 14.6 14.8 27.9 28.3 28.0 3.5 n/a 12% 8% 6%

Singapore Exchange 5% 6,231 5,731 8.9 9.4 9.0 15.5 16.8 15.9 22.6 23.6 22.5 8.8 0% 39% 5% 3%

Euronext -4% 4,344 4,216 5.8 6.3 6.1 10.8 11.5 10.5 16.9 16.9 16.0 4.8 63% 29% 16% 5%

Median 8% 9.2 10.1 9.3 15.4 17.0 15.4 26.7 27.1 22.1 3.7 23% 14% 12% 9%

TEV / Sales TEV / EBITDA Price / Earnings Growth %Market Data

Market Valuations – Capital Markets

L A R G E E X C H A N G E S

R E G I O N A L E X C H A N G E S

16Source: Capital IQ, Bloomberg , Updated on 3/1/2019Note: N/A denotes negative multiple or oddly high multiple or the multiple is not availableNote: 2018 multiples include actual and estimated figures for companies that haven’t reported Q4’18

Company% change

LTMMarket Cap

Enterprise

ValueLTM 2018 A/E 2019 E LTM P/B

Debt /

EquityROE 1 Year

5 Year

CAGR

Charles Schwab -10% 62,393 46,014 19.0x 28.9x 19.2x 3.5x 33% 20% 23% 15%

TD Ameritrade 0% 32,198 32,863 18.3 27.3 16.5 3.9x 42% 23% 48% 14%

Interactive Brokers -16% 23,072 26,809 24.0 33.4 26.1 3.3x 0% 14% 23% 16%

E*Trade -1% 12,444 13,168 12.9 21.8 13.1 2.1x 21% 17% 24% 9%

MarketAxess 18% 9,866 9,379 n/a n/a n/a 15.1x 0% 31% 11% 13%

IG Group -28% 2,815 2,361 10.0 10.8 11.0 2.6x n/a 27% 14% 8%

LPL Financial 22% 6,477 8,635 15.4 34.6 14.7 6.7x 243% 45% 21% 5%

Matsui Securities 18% 2,806 3,822 26.3 n/a n/a 3.3x 123% 12% 16% 9%

Comdirect Bank -12% 1,621 n/a 33.7 19.1 17.4 2.2x 0% 8% -33% -6%

Monex 21% 1,062 2,351 24.7 21.4 21.5 1.5x 185% 6% 14% 6%

Swissquote Group 1% 742 n/a 14.3 19.0 14.9 2.2x n/a 16% 28% 12%

Gain 1% 312 91 10.6 n/a 9.7 0.9x 38% 29% n/a n/a

VIEL et Cie -6% 442 578 10.4 12.5 12.4 1.1x n/a 10% -2% -3%

Bourse Direct -30% 74 n/a 24.9 n/a n/a 1.0x n/a 5% n/a n/a

Median -1% 16.8 21.6 14.9 2.4x 33% 16% 16% 9%

Market Data Price / Earnings Growth %

Market Valuations – Capital Markets

R E T A I L / e - B R O K E R S

17

B R O K E R D E A L E R S & M A R K E T M A K E R S

Raymond James -8% 11,912 10,777 12.4x 15.6x 12.5x 1.9x 44% 17% 15% 10%

TP ICAP -39% 2,402 2,339 40.9x 9.2x 10.0x 1.0x n/a 2% 97% 16%

BGC Partners -26% 3,134 4,447 10.8x 5.9x 5.2x 2.7x 89% 28% -42% 3%

Virtu Financial -13% 4,843 8,068 8.5x n/a 13.3x 3.2x 62% 25% 83% 23%

INTL FCStone 9% 840 2,065 10.3x n/a n/a 1.6x 83% 17% 24% 16%

ITG 54% 1,000 1,016 n/a n/a 29.9x 2.8x 15% 0% 3% -1%

Ladenburg Thalmann -10% 437 785 n/a n/a n/a n/a 0% n/a 15% 14%

Median -10% 10.8x 9.2x 12.5x 2.3x 53% 17% 15% 12%

Source: Capital IQ, Bloomberg , Updated on 3/1/2019Note: N/A denotes negative multiple or oddly high multiple or the multiple is not availableNote: 2018 multiples include actual and estimated figures for companies that haven’t reported Q4’18

Company% change

LTMMarket Cap

Enterprise

ValueLTM 2018 A/E 2019 E LTM P/B

Debt /

EquityROE 1 Year

5 Year

CAGR

JP Morgan Chase -8% 341,929 n/a 11.6x 15.2x 11.3x 1.5x 145% 13% 14% 4%

Wells Fargo -13% 227,608 n/a 11.6x 12.3x 11.5x 1.3x 116% 12% 0 3%

Bank of America -7% 283,098 n/a 11.1x 16.2x 11.5x 1.2x 86% 11% 10% 2%

Citigroup -12% 151,603 n/a 9.6x 12.3x 9.8x 0.9x 134% 9% 9% 1%

Goldman Sachs -23% 75,886 n/a 7.8x 10.5x 8.2x 0.9x 330% 13% 22% 5%

U.S, Bancorp -3% 82,784 n/a 12.5x 15.1x 12.6x 1.9x 80% 15% 9% 4%

Morgan Stanley -22% 72,623 n/a 8.9x 12.1x 8.8x 1.0x 245% 12% 15% 6%

Capital One -13% 39,424 n/a 7.1x 10.8x 7.3x 0.8x 113% 12% 8% 6%

US Banks Median -13% 9.6x 12.3x 9.8x 1.0x 116% 12%n/a 9% 4%

HSBC -15% 162,600 n/a 13.2x 12.1x 10.7x 1.0x 55% 8% 13% -2%

Commonwealth Bank of Australia -2% 93,146 n/a 13.7x 12.6x 13.6x 1.9x n/a 14% 3% 0%

Royal Bank of Canada 3% 111,802 n/a 11.8x 13.1x 12.1x 2.0x 11% 18% 14% 8%

Lloyds -8% 59,206 n/a 11.9x 7.4x 8.2x 1.0x 209% 9% -9% -7%

BNP Paribas -31% 63,769 n/a 7.4x 6.5x 7.4x 0.6x 212% 8% -10% 0%

Royal Bank of Scotland -1% 41,892 n/a 19.3x 9.6x 9.5x 0.7x 27% 4% 4% -7%

UBS -25% 49,051 n/a 9.5x 9.5x 9.2x 0.9x 267% 9% 10% 2%

Barclays -23% 36,771 n/a 17.9x 10.1x 7.9x 0.5x 161% 3% 7% -5%

Deutsche Bank -36% 19,214 n/a n/a 10.7x 26.6x 0.3x 226% -3% -40% -11%

Bank of Montreal 7% 49,572 n/a 11.2x 12.1x 11.4x 1.5x 14% 14% 15% 9%

Credit Suisse -27% 31,643 n/a 15.1x 16.0x 12.6x 0.7x 350% 5% 8% -2%

Standard Chartered -23% 26,714 n/a 40.5x 15.1x 11.3x 0.6x n/a 1% 13% -2%

Foreign Banks Median -19% 13.2 11.4 11.0 0.8 185% 8%n

/7% -2%

Market Data Price / Earnings Growth %

G L O B A L D I V E R S I F I E D I N V E S T M E N T B A N K S

Market Valuations – Banks

18Source: Capital IQ, Bloomberg , Updated on 3/1/2019Note: N/A denotes negative multiple or oddly high multiple or the multiple is not availableNote: 2018 multiples include actual and estimated figures for companies that haven’t reported Q4’18

19

A L T E R N A T I V E L E N D I N G

Market Valuations – Alternative Lending

Company% change

LTMMarket Cap

Enterprise

ValueLTM 2018 A/E 2019 E LTM P/B

Debt /

EquityROE 1 Year

5 Year

CAGR

Greensky, Inc n/a 2,167 2,219 n/a 22.8 20.4 n/a n/a n/a 24% n/a

Spring Leaf 10% 4,543 19,042 10.2 9.5 6.7 1.2 400% 12.6% 13% 13%

Lending Tree -6% 4,139 4,410 36.6 n/a n/a 11.9 72% 30% 24% 41%

Lending Club -18% 1,281 1,368 n/a n/a 30.1x 1.5x 0% -14% 0% 33%

On Deck 21% 463 1,224 16.6 n/a 11.3 1.5 268% 10% 14% 44%

Elevate Credit -37% 190 695 15.2 14.4 15.2 1.63 482% 11.8% 17% 61%

Median -6% 14.4 15.2 1.5 170% 12% 15% 41%

Market Data Price / Earnings Growth %

Source: Capital IQ, Bloomberg , Updated on 3/1/2019Note: N/A denotes negative multiple or oddly high multiple or the multiple is not availableNote: 2018 multiples include actual and estimated figures for companies that haven’t reported Q4’18

20

M&A Trends

1

3

6

2

4

6

1 1

6

1

4

2

1

4

5

2

1

22

3

1 1

3

2

5

8

1

CAPITAL MARKETS INSTITUTIONAL SOFTWARE SOLUTIONS FOR CORPORATES

INSURANCE TECH LENDING & CREDIT PAYMENTS PERSONAL FINANCE AND INVESTMENT MANAGEMENT

2018 - September 2018 - October 2018 - November 2018 - December 2019 - January 2019 - February

Select Last 6 Months - M&A Transactions Trend

Source: Capital IQ, Bloomberg, Crunchbase, Waters Technology, Nasdaq, Finextra Research, FinSME, Pitchbook

21All M&A transactions in this report are U.S. target companies and any foreign target companies with U.S. buyer(s)

COUNT OF M&A TRANSACTIONS BY CATEGORY17 29 2 7 17 6

22

Capital Raising Trends

3

9

8 8

6

8

7

8

7

9

10

99

22

11

13

8

10

9

4 4

2

11

8

4

8

7

8

5

8

7

14

1

12

7

9

CAPITAL MARKETS INSTITUTIONAL SOFTWARE SOLUTIONS FOR CORPORATES

INSURANCE TECH LENDING & CREDIT PAYMENTS PERSONAL FINANCE AND INVESTMENT MANAGEMENT

2018 - September 2018 - October 2018 - November

Select Last 6 Months Capital Raise Trends

23All capital raises in this report are U.S. companies and any foreign companies with U.S. investor(s)

Source: Capital IQ, Bloomberg, Crunchbase, Waters Technology, Nasdaq, Finextra Research, FinSMEs, Pitchbook

39 65 38 52 47 52

COUNT OF COMPANIES RAISING FUNDING BY CATEGORY

97

190

87

150

310

57

35

7

78

0

36

1

491

272

7091

1342

63

8

117

35

2

15

0

128

348

19

398

394

95

8

101

633

251

160

236

14

8

236

5

905

11

2

772

CAPITAL MARKETS INSTITUTIONAL SOFTWARE SOLUTIONS FOR CORPORATES

INSURANCE TECH LENDING & CREDIT PAYMENTS PERSONAL FINANCE AND INVESTMENT MANAGEMENT

2018 - September 2018 - October 2018 - November 2018 - December 2019 - January 2019 - February

Select Last 6 Months Capital Raise Trends

24All capital raises in this report are U.S. companies and any foreign companies with U.S. investor(s)

Source: Capital IQ, Bloomberg, Crunchbase, Waters Technology, Nasdaq, Finextra Research, FinSMEs, Pitchbook

FUNDING INVESTMENTS IN FINTECH COMPANIES BY CATEGORY$828 M $2,996 M $1,742 M $2,312 M $1,599 M $1,380 M

13

1

8

1 1

5

6

2

4

1

7

8

15

17

16

12

133

14

4

8

3

2

2

2

2

2

3

CAPITAL MARKETS INSTITUTIONAL SOFTWARE SOLUTIONS

INSURANCE TECH LENDING & CREDIT PAYMENTS PERSONAL FINANCE AND INVESTMENT MANAGEMENT

Undisclosed Angel | Seed Early Stage Late Stage PE Growth

Select Last 6 Months Capital Raise Trends

25All capital raises in this report are U.S. companies and any foreign companies with U.S. investor(s)

Source: Capital IQ, Bloomberg, Crunchbase, Waters Technology, Nasdaq, Finextra Research, FinSMEs, Pitchbook

19 39 26 30 24 27

FUNDING ROUND TYPE BY CATEGORY

26

US IPO Dynamics

State of Capital Markets – US IPO Market Update

Source: PWC, Renaissance Capital27

34

70

3432

8

34 3330

25

52

29

54

44

60

52

34

-30

-10

10

30

50

70

$0B

$2B

$4B

$6B

$8B

$10B

$12B

$14B

$16B

$18B

Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18

US IPO's # IPO's

Proceeds ($M) 2015 2016 2017 2018

US IPO’s $ 30,200 $ 18,800 $ 35,600 $ 46,800

Select FinTech US Public Offerings – 2017 - 2018

28*Amount raised excludes greenshoe option

Source: Capital IQ, Bloomberg, Crunchbase, Waters Technology, Nasdaq, Finextra Research

12/13/2018 360 Finance, Inc Lending & Credit NASDAQ: QFIN $ 51 16.50 - 18.50 $ 16.50 0.0%

10/25/2018 StoneCo Ltd Payments NASDAQ: STNE $ 1,400 21.00 - 23.00 $ 24.00 -4.1%

6/15/2018 AvalaraInstitutional Software &

SolutionsNYSE: AVLR $ 180 21.00 – 23.00 $ 35.00 10.4%

10/25/2018 Pintec Technology Lending & Credit NASDAQ: PT $ 44 10.00 - 12.00 $ 11.88 -6.7%

10/12/2018 Anaplan, IncInstitutional Software &

SolutionsNYSE: PLAN $ 264 15.00 - 17.00 $ 17.00 0.0%

6/24/2018 I3 Vertical. Payments NASDAQ: IIIV $ 87 11.00 - 13.00 $ 18.00 -17.8%

5/24/2018 Greensky, Inc Lending & Credit NASDAQ: GSKY $ 874 22.00 - 23.00 $ 23.00 14.7%

5/23/2018 EVO Payments Payments NASDAQ: EVOP $ 224 16.00 - 19.00 $ 16.00 11.2%

3/26/2018 Ceridian HCMInstitutional Software &

SolutionsNYSE: CDAY $ 462 19.00 - 21.00 $ 22.00 8.9%

4/27/2018 Docusign IncInstitutional Software &

SolutionsNYSE: DOCU $ 629 26.00 - 28.00 $ 29.00 3.4%

3/16/2018 Zuora, IncInstitutional Software &

SolutionsNYSE: ZUO $ 154 9.00 - 11.00 $ 14.00 -5.0%

2/9/2018 Cardlytics Payments NASDAQ: CDLX $ 70 13.00 - 15.00 $ 13.00 37.0%

11/10/2017 PPDAI Group Inc. Alternative lending NYSE: PPDF $ 221 16.00 - 19.00 $ 13.00 0.0%

12/26/2017 PagSeguro Digital Ltd Payments NYSE: PAGS $ 2,300 17.50 - 20.50 $ 21.50 -4.3%

10/17/2017 Qudian Inc. Alternative Lending NYSE: QD $ 900 19.00 - 22.00 $ 24.00 18.3%

4/6/2017 Elevate Credit Alternative Lending NYSE: ELVT $ 81 12.00 - 14.00 $ 6.50 18.5%

1 Week Return Amount Raised*

($ millions)Offering Date Company Sector Ticker Name

Offering Price

Range ($)Offering Price ($)

29

The Rosenblatt Difference

Our services

30

We provide conflict-free, agency-only equity execution service to many of the leading institutional investors across US and international markets

As the biggest broker on the NYSE floor, we provide clients access to unique advantages available to floor broker community

With one of the most experienced team of high-touch traders, we deliver best quality execution in any market conditions

Rosenblatt Securities helped pioneer the field of market-structure analysis more than 15 years ago

We give clients the conflict free intelligence they need to navigate and thrive in complex and fragmented capital markets

Rosenblatt launched FinTech-focused investment banking more than 10 years ago. Since then, we have come to be known as FinTech sector specialists

Featured in Institutional Investor's FinTech Finance 40 rankings, our team brings unequaled domain expertise and a laser focus on financial technology

As trusted advisers, we help private and public companies with capital raising, M&A and business development. We get past the industry hype by fostering education and networking within the FinTech community

As part of our practice, every year, we host annual FinTech Summit showcasing some of the most exciting FinTech companies

Our team of veteran equity research analysts provide expert insights and corporate-access opportunities for investors in the TMT and FinTech sectors

In addition to our inhouse research capabilities, we also have exclusive relationships with brokers from over a dozen emerging- and frontier-markets

Our analytics team, led by a veteran former buy-side quant, approaches execution with a practitioner’s perspective and applies world-class data science. Our visualization expert hasearned the designation of Alteryx ACE and was the first-ever Tableau Zen Master

Our team has developed tools that are used for pre-trade, trade and post-trade analysis by our internal trading team as well as by the largest investment banks and asset managers

TradingMarket Structure

Investment Banking

Fundamental Research

Technology Solutions

We started as an independent NYSE floor broker in 1979 with a simple goal: deliver conflict-free advice and execution. Since then, we have adapted, expanded and diversified to become a leading agency brokerage, investment-banking and research boutique. But we remain committed to our founding principles in everything we do

Our services

31

Rosenblatt launched FinTech-focused investment banking more than 10 years ago. Since then, we have come to be known as FinTech sector specialists

Featured in Institutional Investor's FinTech Finance 40 rankings, our team brings unequaled domain expertise and a laser focus on financial technology

As trusted advisers, we help private and public companies with capital raising, M&A and business development. We get past the industry hype by fostering education and networking within the FinTech community

As part of our practice, every year, we host annual FinTech Summit showcasing some of the most exciting FinTech companies

Investment Banking

We started as an independent NYSE floor broker in 1979 with a simple goal: deliver conflict-free advice and execution. Since then, we have adapted, expanded and diversified to become a leading agency brokerage, investment-banking and research boutique. But we remain committed to our founding principles in everything we do

Advisory Services

M&A Due Diligence

Divestitures Valuations

Restructuring Transaction Structuring

Fairness Opinions Negotiations

Capital Raising

Equity Capital Markets

Buybacks

Follow-On Offerings

Private Equity Private Debt

StrategicManagement

Consulting

Market Entry

Peer Group Benchmarking

Exit Strategies

Industry / Competitive Analysis

BusinessDevelopment

Product Validation

Channel Partner

Development

Customer Introduction

Full Service Advisory Offering

Strong value proposition

Our Market Structure Summit on panel with Virtu Financial, XTX Markets, Jane Street, and DRW Holdings

Our Market Structure Summit in conversation with SEC Chairman Jay Clayton

• We pride ourselves in creating solutions that address individual client's needs; always shying away from cookie-cutter solutions

32

• Focused coverage of capital markets and financial technology firms across asset classes to address their corporate finance needs

• Trusted advisers on dozens of deals and we go beyond just executing – with our annual Financial Technologies Summit (FTS) and Global Exchange Leader Conference /(GELC) we’re committed to advising and educating our clients

• Our deep domain expertise and attention to details uncovers often overlooked complexities and nuances

• Our investment banking, research, and consulting efforts have fostered deep ties with many of the largest financial services and private equity firms across North America, EMEA, and Asia-Pacific

• Our brokerage operations have allowed us to develop extensive relationships with leading institutional investors and portfolio managers

• Strong relationships with a roster of global bank partners for offerings that require balance sheet commitment and institutional underwriting

Unparalleled Domain Expertise

Deep Strategic & Financial Relationships

Tailored Execution Experience

Our FinTech Summit on panel with R3, Ripple, Noble, Symbiont, and PeerNova

Our FinTech Summit on panel with Virtu Financial, XTX Markets, Jane Street, and DRW Holdings

Rosenblatt’s, Vikas Shah named to FinTech Finance 40 list

Clients call on us for deep-domain expertise in FinTech, close dialogues with an extensive roster of institutional investors and proven execution experience. We have the track record of working on exclusive engagements as well co-managers with other well-respected industry underwriters

33

Contact:

V i ka s S h a hI n v e s t m e n t B a n k i n g

2 1 2 - 6 0 7 - 3 1 0 0v s h a h @ r b l t . c o m

Copyright 2019. Rosenblatt Securities Inc. All rights reserved.

Rosenblatt Securities Inc. seeks to provide and receive remuneration for Agency Brokerage, Market Structure Analysis, Macro and otherSector Analysis and Investment Banking Advisory Services. Rosenblatt Securities Inc. may, from time to time, provide these services tocompanies mentioned in this analysis. This material is not a research report and should not be construed as such, and does not containenough information to support an investment decision. Neither the information contained herein, nor any opinion expressed herein,constitutes the recommendation or solicitation of the purchase or sale of any securities or commodities. The information herein wasobtained from sources which Rosenblatt Securities Inc. believes reliable, but we do not guarantee its accuracy. No part of this material maybe duplicated in any form by any means. Member NYSE, FINRA, SIPC.