Specialist growth investor Verdane has taken a majority stake in Corlytics, a global leader in regulatory intelligence and policy compliance technology.
It follows an undisclosed investment by Verdane, which has €6.9BN in committed capital scaling tech-enabled growth businesses.
Verdane will leverage more than 20 years of experience partnering with European software businesses and extensive expertise in RegTech to support Corlytics.
The transaction was managed by investment bank Baird in a competitive process that saw significant market interest.
The deal is a cornerstone investment from Verdane’s newly raised €1.1 billion Edda III Fund, which recognises Corlytics as a category leader and RegTech industry consolidator.
Since 2020, Corlytics has grown 60 per cent per annum, predominantly driven by its core regulatory compliance products.
The number of Corlytics customers has roughly doubled during this period. 2023 also saw Corlytics make two significant acquisitions – ING SparQ in January and Clausematch in July.
John Byrne, Corlytics’ founder and CEO, said: “Corlytics has successfully progressed in developing new products to further improve our value proposition to Tier 1 clients globally.
“This investment from Verdane ensures the continued growing market leadership for Corlytics. We look forward to partnering with the Verdane team and with their experience and expertise, we expect to accelerate organic growth and augment that with M&A activity.
“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.”
Nils Vold, partner at Verdane, added: “Verdane is delighted to back John and his impressive team at Corlytics. This is a centrepiece majority investment from our newly raised €1.1 billion Edda III Fund and we are thrilled that John and Corlytics chose to partner with Verdane against very strong market interest in the business.
“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 Verdane investment and partnership, Simon Russell joins Corlytics as chair. He has almost 30 years of software advisory expertise. Over the last 15 years, he had led technology investment banking at firms including Nomura and Dresdner Kleinwort and he served on banking management committees.
He said: “I have long admired Corlytics as a real RegTech industry leader. I am delighted to be partnering with John and Verdane to create value through an active acquisition agenda, plus providing Corlytics with wider support on delivering its ambitious growth plans.”
As well leveraging generative AI throughout workflows, Corlytics is plugged directly into international regulators, delivering an industry-leading end-to-end compliance platform.
Corlytics is the only solution that enables clients to align with, and stay ahead of, regulatory demands, which now include growing levels of proof of compliance.
The terms of the transaction have not been disclosed.