South Street Acquires Lime Funding in Strategic Structured Finance Push

NEW YORK, NY – May 12, 2026 – In a move that signals a significant expansion of its financing capabilities, South Street Securities Holdings Inc. today announced its acquisition of 100% of the equity in Lime Funding, LLC, an asset-backed commercial paper (ABCP) conduit. The deal, which was finalized on February 28, 2026, strategically positions South Street to capitalize on the growing market for short-term, asset-backed debt while deepening its integration into the structured finance ecosystem.

The acquisition brings Lime Funding under the umbrella of South Street’s diverse financial services platform, which spans repo financing, back-office technology, and algorithmic trade execution. This integration is part of a calculated strategy to offer more comprehensive and efficient funding solutions to its institutional client base.

“Integrating Lime Funding into the South Street platform reflects our strategy of building scalable, balance‑sheet‑efficient funding solutions for our clients,” said James Tabacchi, CEO of South Street Securities Holdings Inc., in the official announcement. The move underscores a clear ambition to not only participate in but also innovate within the highly competitive securities finance landscape.

A Pattern of Calculated Growth

For industry observers, South Street's acquisition of Lime Funding is not an isolated event but the latest chapter in a multi-year story of strategic expansion. Founded in 2001 by a team of Wall Street veterans, the firm has methodically built its capabilities through a series of targeted acquisitions and partnerships, with a consistent focus on technology and specialized financial services.

This journey includes the 2017 acquisition of the QTIX collateral management platform to bolster its subsidiary Matrix Applications, and a pivotal investment in AmeriVet Securities, a veteran-owned broker-dealer. More recently, the 2024 acquisition of fintech software developer GX2 Systems, LLC marked a significant leap, transforming South Street into a technology-enabled provider of multi-asset class services. The integration of GX2's algorithmic trading platform was completed just last year, underscoring the firm's commitment to leveraging technology as a competitive differentiator.

The purchase of Lime Funding fits seamlessly into this narrative. It provides South Street with an established vehicle to enter the ABCP market—a key component of the global short-term funding landscape—without having to build a conduit from the ground up. This allows the firm to immediately offer new financing avenues to its clients, which include institutional asset managers, REITs, and mortgage lenders.

The Power of a Collaborative Trio

The true strength of the revitalized Lime Funding program lies in the powerful collaboration between three distinct entities, each bringing a crucial component to the table. While South Street now owns the conduit, the program’s operational integrity and market appeal are anchored by the continued involvement of Sumitomo Mitsui Trust Bank, Limited (SuMi TRUST) and GreensLedge Advisors LLC.

SuMi TRUST, a titan of Japanese finance with assets under management in the hundreds of billions, serves as the program's administrative agent and, most critically, its liquidity provider. In the world of ABCP, the liquidity provider is the financial backstop, guaranteeing that the conduit can meet its obligations to investors even in stressed market conditions. SuMi TRUST's formidable balance sheet and strong credit ratings—holding an 'A-' rating from both Fitch and S&P Global—provide the bedrock of security and confidence that is essential for investors in short-term debt.

GreensLedge Advisors, a specialized investment bank focused on structured finance and now an indirect subsidiary of Raymond James Financial, acts as the sub-administrator. Its team brings deep, niche expertise in overseeing the complex mechanics of commercial paper issuance. Having administered the Lime Funding conduit since its inception in 2019, GreensLedge ensures operational continuity and sophisticated management of the program's day-to-day functions.

South Street Securities completes the trio, bringing its core competencies in risk management, client distribution, and its growing technological prowess to the partnership. The firm will leverage its extensive network of institutional clients to distribute the ABCP and originate assets for the conduit. This synergy—combining SuMi TRUST’s liquidity, GreensLedge’s administrative expertise, and South Street’s distribution and tech-enabled risk management—creates a robust, full-service ecosystem designed to benefit both borrowers seeking efficient capital and investors seeking safe, diversified yield.

Capitalizing on a Resurgent ABCP Market

South Street’s entry into the ABCP space is exceptionally well-timed. The global market for asset-backed commercial paper, valued at over $1.4 trillion in 2025, is projected to grow at a steady compound annual rate of 5.6% through 2034. This growth is fueled by a persistent demand for short-term financing and the attractiveness of securitization as a tool for regulatory capital relief.

Having undergone significant reforms since the 2008 financial crisis, the modern ABCP market is characterized by more resilient structures and stronger regulatory oversight. Investor confidence has returned, buoyed by the security offered by bank-provided liquidity facilities. The market is also evolving, with a notable rise in activity from non-bank financial intermediaries and fintech-enabled sponsors, a trend that South Street is now positioned to lead.

For corporate and institutional borrowers, the revitalized Lime Funding conduit offers an alternative, efficient source of capital, backed by the credibility of its high-caliber partners. For investors, particularly money market funds and corporate treasuries, it provides a new avenue for diversified, short-term investment opportunities that are asset-backed and supported by a top-tier liquidity provider. As South Street integrates Lime Funding with its other technology platforms, such as those from Matrix Applications and GX2 Systems, the potential for enhanced efficiency, real-time analytics, and streamlined execution could further distinguish this offering in a crowded marketplace.