Derivative Path Taps Co-Founder as President to Drive AI-Led Growth

NEW YORK & SAN FRANCISCO – February 19, 2026 – Derivatives technology provider Derivative Path has elevated co-founder Zack Nagelberg to the role of President, a strategic move that solidifies the firm’s commitment to accelerating growth and technological advancement. The promotion places a key architect of the company’s success at the helm of its strategic operations, signaling an intensified focus on expanding its market presence and platform capabilities in a rapidly evolving financial landscape.

Nagelberg, who has been instrumental in the company’s trajectory since its inception, will now guide enterprise-wide priorities and execute on a long-term growth strategy. The move comes as Derivative Path scales to meet what it describes as increasing demand from its core client base of financial institutions and alternative investment managers for modern, scalable risk management solutions.

A Founder's Mandate for Growth

Nagelberg’s journey from co-founder and Chief Growth Officer to President underscores a leadership philosophy deeply embedded in the company’s DNA. Before helping establish Derivative Path in 2013, he developed deep domain expertise in interest rate derivatives at Wells Fargo Securities. He leveraged that experience to help build Derivative Path from a startup into a trusted partner for over 300 institutions, shaping its client-centric model and go-to-market functions.

In his new capacity, Nagelberg is tasked with steering the company through its next phase of expansion. His mandate involves not only broadening market reach but also advancing the capabilities of DerivativeEDGE, the company's flagship cloud-native platform for managing interest rate, foreign exchange (FX), and commodity risk.

The promotion is a deliberate step to maintain leadership continuity while doubling down on innovation. Pradeep Bhatia, CEO and co-founder, emphasized the collaborative strength of the founding team, which also includes John Fleming and Frank Purnell.

“Zack has been a true partner in every sense of the word, and each of our co-founders has played an irreplaceable role in making Derivative Path what it is today," said Bhatia in a statement. "Zack’s promotion reflects something we've believed since day one, that shared ownership and investing in our people are how we build lasting success... With Zack stepping into the President role, John continuing to drive operational excellence, and Frank leading product innovation, we’re positioned not just to keep pace with the future, but to define it."

Navigating a Transforming Market

The leadership change occurs against the backdrop of what Bhatia calls an “extraordinary transformation” in capital markets. Financial institutions are grappling with persistent market volatility, evolving regulatory frameworks stemming from legislation like the Dodd-Frank Act, and an urgent need to replace disjointed, legacy systems. This environment has created a significant appetite for integrated, cloud-based solutions that offer both advanced technology and deep advisory expertise.

Derivative Path has positioned itself to fill this need. The company’s hybrid model combines its comprehensive DerivativeEDGE platform—which provides front, middle, and back-office functionality—with strategic advisory services. This allows clients, ranging from regional banks and credit unions to private equity firms and fund managers, to manage the full trade lifecycle with greater efficiency and transparency. By democratizing access to sophisticated capital markets tools, the firm has carved out a significant niche, helping institutions that require robust risk management capabilities without the massive overhead of building in-house systems.

The AI Imperative in Risk Management

Central to Derivative Path's future-facing strategy is a deep commitment to artificial intelligence. The company is moving beyond buzzwords, embedding AI throughout its operations and product development with a clear philosophy of protecting, enabling, and empowering its clients. This focus is critical as the industry seeks more intelligent analytics and automation.

Internally, the firm has established an “AI Factory” to accelerate its own development lifecycle, using generative AI to automate testing and reduce repetitive coding tasks. This allows its human experts to focus on higher-value work, from advising clients on complex hedge strategies to designing next-generation solutions.

On the product front, this AI-led innovation is already tangible. The company is actively exploring AI's application in Straight-Through Hedging (STH), using machine learning for pattern recognition across portfolios and to suggest optimal hedge structures. Furthermore, the firm launched an AI-driven Risk Dashboard in 2025, a tool designed to help investment managers transform raw data into strategic insights, enhance market risk decision-making, and safeguard capital.

“The opportunity in front of us has never been larger,” Nagelberg stated. “Capital markets are evolving rapidly, with demand for modern risk infrastructure, increasingly intelligent analytics, and seamless technology accelerating. We are deeply committed to these industry demands, including our focus on AI-led innovation and its implications for the future.”

From Startup Vision to Industry Leader

Founded in 2013, Derivative Path was born from a vision to bring transparency and modern technology to capital markets participants often underserved by larger players. For years, the company grew organically, building its client base and refining its platform. A pivotal moment arrived in 2020 when it secured its first institutional funding—a $35 million Series A round led by FTV Capital. This infusion of capital catalyzed a new era of expansion.

Since then, the company's growth has accelerated significantly. It expanded its client roster from approximately 130 institutions in 2020 to over 300 today, with its platform now managing around $500 billion in notional value. In 2021, Derivative Path acquired Monetics, a debt management platform, further enhancing its ability to streamline workflows between financial institutions and their commercial clients.

Nagelberg’s promotion is the latest chapter in this growth story. His elevation from a founding member to President ensures that the original vision remains at the core of the company’s strategy, even as it scales and tackles more complex challenges.

“I'm incredibly proud of what our founding team and the entire Derivative Path organization have built together,” Nagelberg commented. “I'm energized to take on the President role and to continue building alongside my co-founders, our extraordinary management team, and our board as we enter the most exciting chapter in our company's history.”

With a seasoned co-founder now formally guiding its strategic execution, Derivative Path is signaling to the market that it is prepared to lead the next wave of innovation in risk management, blending its foundational expertise with the transformative power of advanced technology.