Specialist growth investor Verdane has taken a majority equity stake in regulatory intelligence provider, and has committed to accelerating organic growth and M&A, building on Corlytics’ client base of 40% of the top 30 Systemically Important Financial Institutions (SIFIs).
The transaction, which was managed by investment bank Baird, is a cornerstone investment from Verdane’s newly raised €1.1 billion Edda III Fund and seeks to ride a wave of growing risk and compliance expenditure by financial services firms – estimated by Corlytics at €163 billion for 2023 – spanning GRC, financial risk and capital management, cyber and IT security, and financial crime.
Founded in 2013 and headquartered in Dublin, Corlytics helps customers to keep track of regulatory changes, offering regulatory horizon scanning, policy management and attestation. The company has seen growth of 60% per year since 2020, driven by its core regulatory compliance products. The number of Corlytics customers has roughly doubled during this period.
Earlier investors include Enterprise Ireland, Kernel Capital, and Intercept Ventures.
Last year, the company made two significant acquisitions – ING SparQ in January and Clausematch in July – boosting the appeal of its offerings for Tier 1 organisations including ING, BNY Mellon, Scotiabank and Swiss Re.
According to John Byrne, Corlytics’ founder and CEO, “As well as investing significantly in our ‘intelligent content’ offering, combining data, software, and AI, we will continue to lead the RegTech sector consolidation with more complementary acquisitions, following our recent transactions with Clausematch and ING SparQ.”
Says Nils Vold, Partner at Verdane: “We are an active and experienced investor in the RegTech sector, and we identified Corlytics as the global category leader in its field, helping banks and financial services companies manage their compliance obligations in a complex and fast-changing environment.”
As part of the deal, Simon Russell joins Corlytics as chairman. Russell has spent his career leading technology investment banking at firms including Nomura and Dresdner Kleinwort and has served on banking management committees. He now works as a chair and non-executive director at various international software companies.
Financial terms of the deal were not disclosed.
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