Complinet Group, a UK-based provider of online regulatory solutions for the global financial services industry, has raised Gbp18.5 million from Fidelity Equity Partners. Tulleken Co. advised Complinet on the deal, which gives fidelity a “significant minority” position.
Complinet Group, a leading provider of online regulatory solutions for the global financial services industry, today announced that Fidelity Equity Partners has committed to invest Gbp18.5 million to acquire a significant minority stake in the Company.
Sebastian McKinlay and Stephen Findlay, partner and vice president for Fidelity Equity Partners, respectively, have joined the company’s board of directors.
Complinet, founded in 1997, is headquartered in London and is unique in the financial services industry. It currently services over 1,200 companies, including approximately 80 percent of the world’s leading financial services firms, such as Morgan Stanley, UBS, Edward Jones, and Royal Bank of Scotland. The company’s solutions combine deep regulatory insight with innovative technology that provide timely information, analysis and risk management services to more than 100,000 compliance and legal professionals across 81 countries.
The funds will be used to help enhance Complinet’s product offering and build out its international presence. The company will also seek to further expand, either organically or through acquisition, into financial services sub-sectors. Fidelity’s investment also enables some of Complinet’s long standing shareholders to get liquidity for a portion of their holding.
“With Fidelity Equity Partners as our new investment partner, we are in an excellent position to take advantage of our experience and technical leadership in the online regulatory solutions marketplace,” said Chris Pilling, CEO of Complinet. “The timing for this investment is right, given the rapidly growing demand for regulatory and compliance solutions from financial services companies. Through its relationship with Fidelity Investments, Fidelity Equity Partners is the ideal investment partner to accelerate our market leadership and enable us to scale the business to the next level.”
“The global marketplace for regulatory and compliance solutions is growing quickly,” said McKinlay. “In fact, in 2007, risk technology expenditures alone were estimated to be $5.9 billion and grow 7 percent per year.
“Complinet is extremely well-positioned to leverage the significant investment it has made to date in its solution suite and global service offering to take advantage of this opportunity,” McKinlay added. “As a market leading, high growth and international service company Complinet represents a perfect example of the types of business Fidelity Equity Partners was established to invest in and support. We are excited to partner with Chris and the entire Complinet management team.”
The shareholders of Complinet were advised by the van Tulleken Company.
Complinet enables financial services companies to get more out of their compliance resources by automating processes to better understand and minimize their exposure to risk by providing both the information and technologies they need to track and connect changing regulatory issues with their internal policy management and screening activities. The company’s current product offering includes:
- Regulatory Insight � An on-line regulatory information service that delivers highly relevant and well-structured compliance data and analysis.
- Tracker � A compliance dashboard that tracks regulatory developments across more than 60 regulators across the globe.
- Global Screening � A comprehensive suite of customer due diligence and anti-money laundering (AML) services enabling users to assess and monitor the risk profile of organizations and individuals by checking against watch and sanctions lists, adverse media coverage and other data.
- Policy Manager � A compliance content management system that connects external regulatory change to internal policies and controls. Policy Manager automatically highlights when and where a firm’s electronic policy manuals are out of date as regulations change, helping compliance departments and managers to protect their organization from risks associated with non-compliance.
- E-Learning � Customized and off the shelf e-learning courses that enable firms to fulfill regulatory obligations to train staff and develop an effective compliance culture.
About Fidelity Equity Partners
Established in 2007, Fidelity Equity Partners manages a $500 million international private equity fund focused on investing in established, high-growth midsized businesses in North America and Europe.
Fidelity Equity Partners invests in established, high-growth midsized businesses with enterprise values between $50 million and $150 million (Gbp25 million and Gbp75 million) and growing organically at more than 10 percent per year.
The firm is particularly interested in businesses that use information and communication systems to drive growth and competitive advantage, and those that can accelerate organic growth through acquisitions. Its investments typically span a range of sectors, including software, business, financial, consumer and healthcare services, as well as the information and communications systems industries themselves.
Complinet is Fidelity Equity Partners second European investment by its London office, which was launched in September last year. The first, Asset Control, is based in Holland and provides information management solutions to financial services customers.
For more information on Fidelity Equity Partners visit www.fidelityequitypartners.com