Principia

What Principia does

Principia is a New York-based software company founded in 1995 that builds the Principia Analytic System (PAS), a portfolio management, risk analytics, and valuation platform for derivatives and fixed income portfolios. The platform supports multi-curve environments, OIS discounting, and full Alternative Risk Free Rate (SOFR, SONIA, ESTR, TONA) compliance, with end-to-end lifecycle management from deal capture through accounting. PAS addresses structured finance complexity including ABS, MBS, CDOs, Credit Derivative Product Companies (CDPCs), and ABCP conduits, and is used by banks, investment managers, insurance companies, credit investment fund managers, ABCP conduits, and third-party administrators. A streamlined subscription service called pasVal offers web-based daily portfolio valuations, risk reporting, and hedge accounting for derivative portfolios at lower cost, while the broader Principia Analytic System is also available within the ETS (Epsilon Trade Services) platform following the early-2024 acquisition of Principia by Epsilon Technologies Group, Inc.

Principia operates a primarily B2B enterprise software business model, monetizing through full platform licenses (on-premise or integrated with ETS), SaaS subscriptions (PAS hosted), and lower-cost pasVal monthly web subscriptions. Pricing is not publicly disclosed; enterprise contracts typically follow subscription billing with monthly renewals, and SaaS deployments operate within a SOC 2 Type I-compliant control framework. Distribution is primarily via direct enterprise field sales, supplemented by AWS-hosted SaaS delivery and an infrastructure alliance program with SAP, Oracle, Red Hat, and AWS. Marketing relies on thought leadership: technical research papers on derivatives valuation, structured finance surveys engaging 650+ ABS market professionals, and an active LinkedIn SOFR Spotlight Group. In January 2024, Epsilon Technologies Group acquired Principia, integrating PAS into its product line alongside ETS and adding cross-sell potential into Federal Home Loan Banks and regional bank customers.

Name

Principia

Legal name

Epsilon Technologies Group, Inc.

Website

https://ppllc.com

Company type

Private

Founded year

1995

Operating status

Operating

Headcount range

251–500 employees

Short description

Principia builds the Principia Analytic System (PAS), a portfolio management, risk analytics, and valuation platform for derivatives and fixed income portfolios, serving banks, investment managers, insurance companies, and structured finance participants since 1995.

Ownership category

akta.pro rank

Product category

Capital Markets Analytics Software

NAICS

Portfolio Management and Investment Advice (523940), Securities, Commodity Contracts, and Other Financial Investments and Related Activities (523)

SIC

Asset-Backed Securities (6189), Investment Advice (6282)

akta.pro primary industry

Robo-Advice for Institutional/Treasury (OCIO-lite, Cash & Liquidity) (FSAGAEAJ)

Keywords

• Fixed income analytics
• Derivative valuations
• Portfolio management software
• Hedge effectiveness testing
• Structured finance platform

Headquarters

HQ city

New York

HQ country

United States

HQ region

North America

Offices3 records

Markets served

GTM type

B2B

Offering type

Software

Cost components

Technology or R&D, Personnel, Infrastructure, Operations, Marketing or Sales

Revenue model

1. Software-as-a-Service (SaaS) Subscription: Full SaaS deployment providing access to the Principia Analytic System with standardized portfolio, risk and operational processing environment. Clients access via web browser with swift implementation and no onsite installation. The solution operates within SOC 2 Type I-compliant control framework.
2. pasVal Subscription Service: Streamlined derivative portfolio valuation, risk reporting, and hedge accounting subscription service. Once deals are uploaded, users have access to daily calculations and configurable reports. Low-cost monthly subscription with web-browser access.
3. Full Platform License: On-premise or integrated deployment of the full Principia Analytic System alongside ETS platform, providing comprehensive solution for derivative and fixed income portfolio management.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels4 records

Core offering

Principia provides the Principia Analytic System (PAS), a portfolio management, risk analytics, and valuation platform for derivatives and fixed income portfolios, offering end-to-end lifecycle management from deal capture through accounting. It also delivers pasVal, a streamlined web-based subscription service for derivative portfolio valuations, risk reporting, and hedge accounting. The platform supports multi-curve environments, OIS discounting, and Risk-Free Rates (SOFR, SONIA, ESTR, TONA) with compliance support for GASB, FASB, ASC820, ASC815, ASC310, and IAS39.

Product overview

Principia offers a unified platform-plus-modules architecture centered on the Principia Analytic System (PAS). PAS serves as the core platform providing valuations, risk analytics, and hedge effectiveness testing for derivatives and fixed income portfolios. Two complementary offerings extend the platform: pasVal is a streamlined web-based subscription service for simplified daily valuations and risk reporting, while ETS (Epsilon Trade Services) provides integrated trade management and accounting specifically for Federal Home Loan Banks and regional banks. The SaaS deployment option operates within a SOC 2 Type I compliant control framework.

Differentiator

Problem solved

Functional benefit

Brands

• Principia Analytic System (PAS): Tried-and-true valuations, risk analytics, and hedge effectiveness testing for interest-rate derivatives and fixed income portfolios.
• pasVal

Products and services

• Principia Analytic System (PAS) An out-of-the-box capital markets platform providing valuations, risk analytics, and hedge effectiveness testing for interest-rate derivatives and fixed income portfolios, supporting portfolio management, risk surveillance, compliance management, and financial reporting on a single operational platform. Used by financial institutions, investment managers, insurance companies, and credit investment fund managers.
• pasVal A streamlined subscription service providing web-based access to market-proven valuations, risk, credit adjustments, and hedge effectiveness testing for derivative portfolios. Includes CVA (GASB 72 & ASC 820) and hedge effectiveness testing (GASB 53 & ASC 815), with cash flow and reset verification.
• ETS (Epsilon Trade Services) A trade management, valuation, reporting, and accounting platform designed specifically for Federal Home Loan Banks and regional and local banks, available as an integrated component of PAS for derivative and fixed income portfolio management.

Quantifiable outcome

• Over 650 ABS market professionals participated in due diligence surveys demonstrating industry engagement
• +4 more outcomes

Named customers6 records

Segments1 record

Ideal customer profiles4 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature7 records

Partnerships

Two partnerships are on record, tiered core.

• AWS (Amazon Web Services)coreTechnology or IntegrationPowered by AWS Cloud Computing designation indicates cloud infrastructure partnership for SaaS deployments. AWS provides the underlying cloud computing platform supporting Principia's hosted solutions.
• Epsilon Technologies GroupcoreStrategic or Co-development PartnerEpsilon Technologies Group acquired Principia in early 2024. Principia Analytic System is now part of Epsilon's product line alongside ETS. Epsilon is a capital markets technology solutions and services firm committed to the same purpose as Principia.

Scale indicators3 records

Recent moves6 records

Expansion highlights6 records

Broad incumbents

• Finastra: Finastra provides capital markets, lending, and treasury software to banks globally, including derivatives and fixed income functionality. As a broad incumbent, Finastra competes with Principia in serving regional and mid-sized banks with portfolio management solutions.
• MSCI RiskMetrics: MSCI (formerly RiskMetrics) offers portfolio analytics, risk modeling, and valuation services across asset classes, including fixed income and derivatives. As a broad incumbent, MSCI competes with Principia in risk analytics and valuation for institutional investors.
• Moody's Analytics: Moody's Analytics provides structured finance solutions, valuation services, and risk analytics, including the Structured Finance Portal and CreditEdge. Like Principia, it serves ABS/MBS market participants with cashflow modeling and valuation capabilities.
• SS&C Technologies: SS&C provides asset management, hedge fund, and capital markets software including portfolio accounting, valuation, and risk management. Its GlobeOps and Black Diamond offerings overlap with Principia's portfolio management and analytics for institutional investors.
• ICE (Intercontinental Exchange): ICE provides fixed income data, analytics, and execution services through its Connect and ICE Data Services offerings. As a broad incumbent with fixed income focus, ICE competes with Principia in valuation, pricing, and analytics for institutional fixed income users.
• FIS (Fidelity National Information Services): FIS offers capital markets software including trading, risk, and post-trade processing solutions for banks and asset managers. As a broad incumbent, FIS competes with Principia in derivatives and fixed income processing for institutional clients.
• Bloomberg Portfolio & Risk Analytics: Bloomberg's PORT and fixed income analytics suite provides valuation, risk, and scenario analysis for derivatives and structured products. As a broad incumbent, Bloomberg bundles these capabilities with its terminal, creating pricing pressure for specialized platforms like Principia.

Direct peers

• Numerix: Numerix provides cross-asset analytics and valuation for derivatives and structured products, directly competing with Principia Analytic System in fixed income and derivatives valuation. Both serve banks, insurance companies, and asset managers with multi-curve pricing, risk analytics, and hedge effectiveness testing.
• Murex: Murex offers a capital markets platform for trading, risk management, and post-trade processing of derivatives and fixed income. Like Principia, it serves large financial institutions with end-to-end portfolio management, valuation, and analytics capabilities.
• Calypso Technology: Calypso (now part of Broadcom) provides a capital markets platform covering trading, risk, collateral, and compliance for derivatives and fixed income. Both Principia and Calypso target banks and dealers with comprehensive cross-asset front-to-back solutions.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/principia-partners

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles6 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Principia