Reports CTRM Briefing Note – Allegro Development

CTRM Briefing Note
Allegro Development
September 2018
Overview
Allegro Development (Allegro) is the oldest continuously operating ETRM/CTRM solutions provider
in the world. Founded in 1984 by now chairman Eldon Klaassen, the company initially serviced the oil
& gas producer market’s needs for a dedicated solution for tracking and managing commodity sales
in the still highly regulated US energy markets. With deregulation of the US natural gas markets in
the early 1990’s, the market for the company’s products grew rapidly. Despite a number of new
solutions providers entering the market during that period, Allegro has consistently seen demand
grow for its products across all energy commodities and markets, including expansion into the
European and Asia Pacific regions. Currently the company maintains sales and support offices in 7
countries.
Operating from their Dallas headquarters since the company’s founding, Allegro has grown primarily
through organic growth, supplemented by two acquisitions: JustCommodity, a Singapore-based
provider of CTRM for the global softs markets in 2015, and FEA, a US-based provider of risk analytics
in 2018.
Allegro is backed by private equity investors Vector Capital and Cerium. The company, post ION’s
acquisition of Openlink, is now the largest independently operating vendor of CTRM solutions in the
world - providing software internationally across many commodity markets, including crude oil,
refined products, natural gas, natural gas liquids, liquefied natural gas, power, edible oils, rubber, and
emissions - to more than 260 client companies. Recently, the company announced a development
initiative to build out capabilities for the growing metals and metal concentrate markets as well.
FEA Acquisition
In April of 2018, Allegro announced it had acquired the Financial Engineering Associates’ (FEA)
business unit from MSCI. FEA is an US-based provider of software and consulting services for
advanced risk management and analytics. Originally founded in 1990, FEA’s solutions provide
customers with global commodity trading financial analytics. FEA’s trade and portfolio analytic
solutions provide a strategic fit with Allegro’s distribution channels, investment strategy, and
extensible CTRM / ETRM software suite. As envisioned by the company, “the combined solution
provides customers with commodity trading quantitative analytics that lead to better portfolio
pricing, valuation, decision support, risk management and physical asset optimization.”
With customers in more than 20 countries, FEA’s products cover thousands of different instruments
and assets and provide customers the ability to model the breadth of their enterprise portfolios.
At a Glance
Company Background
Founded:
Chairman:
CEO:
Offices:
Employees:
Website:
1984
Eldon Klaassen
Frank Brienzi
Dallas TX, US
London UK
Singapore
Calgary CA
Dubai UAE
Houston TX, US
Jakarta ID
Zurich CH
370 (Est.)
Allegrodev.com
Products
Allegro Horizon
Allegro Ags
Allegro Analytics (FEA)
Market Profile (ComTech Est.)
Customers by Geography
North America
South America
Europe
Africa
AsiaPac including Aust.
48%
1%
30%
1%
20%
Customers by Market Segment
Utilities
Energy Retailers
Banks/Financials
Biofuels
Energy Producers
Refining/Petrochems
Industrial Consumers
25%
18%
3%
12%
24%
12%
6%
Financial Results
Financial Results
Though Allegro is privately held and does not publically disclose financial information, ComTech
analysis indicates the company’s sales and revenue performance has exceeded that of the overall
CTRM market over the last 5 years.
Product Set and Technology Base
Allegro is a privately held company
and does not disclose financials.
ComTech analysis indicates the
company’s sales and revenue
performance has exceeded that of
the overall CTRM market over the
last 5 years.
Recently redesigned to be deployed in a modular configuration – in which customers pick and choose
only those products they require – Allegro’s technology stack and architecture allows it to offer its
solutions in a traditional on-premises model as well as via the cloud as hosted deployment. The company’s flagship product, Allegro Horizon is
designed to help companies who buy, sell, produce or consume commodities better understand, manage and profit from their portfolio. With
capabilities spanning credit, risk, logistics and real-time position visibility – and now with enhanced risk analytics provided by FEA, that provides
customers with global commodity trading and quantitative analytics that better portfolio pricing, valuation, decision support, risk management, and
© Commodity Technology Advisory llc
September 2018
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