(Reuters) - Miami International Holdings has secured a $100 million investment from private equity firm Warburg Pincus, the owner of Miami International Securities Exchange (MIAX) said on Thursday.
The announcement comes days after Miami International launched MIAX Sapphire, its fourth national securities exchange for trading U.S. options.
The investment will fund the construction of a physical trading floor in Miami, Florida, for MIAX Sapphire electronic exchange, among other uses.
MIAX Sapphire will be the first national securities exchange to establish operations in Miami, the company said. The trading floor is scheduled to go live in 2025.
Options are listed derivatives that give the holder the right to buy or sell an asset, such as a stock or exchange-traded product, at a predetermined price by a set date.
The investment will also provide Miami International additional funding to pursue acquisitions and support the expansion of its agricultural and financial futures businesses.
"Our investment provides capital at a pivotal moment for MIAX," said Warburg Pincus managing director Lee Becker, who will join Miami International's board as part of the investment.
Warburg Pincus may increase its investment, subject to conditions, Miami International said.
Miami International owns four options exchange including the MIAX Pearl. It also runs the Bermuda Stock Exchange and the Minneapolis Grain Exchange.
Piper Sandler is the financial adviser to Miami International while Broadhaven Capital Partners advised Warburg Pincus.