Hg, the Manager of HgCapital Trust plc ("HgT"), today
announces an investment in CUBE, a global leader in Automated
Regulatory Intelligence (ARI) and Regulatory Change Management
(RCM) technology.
The terms of the transaction are not
disclosed.
HgT will invest approximately £9.7 million in CUBE, with other
institutional clients of Hg investing alongside HgT through the Hg
Mercury 4 Fund.
HgT, whose shares are listed on the London Stock Exchange,
gives private and institutional investors the opportunity to
participate in all Hg's investments.
Note that these figures only relate to HgT's share of Hg's
overall investment in CUBE.
HgT's liquid resources available for future deployment
(including all announced transactions, the undrawn bank facility
and the full year dividend payable in May 2024) are estimated to be
£691 million (30% of the estimated 29 February 2024 NAV of £2.3
billion).
The investment will reduce HgT's outstanding commitments to
invest in Hg transactions to approximately £948 million (41% of the
estimated 29 February 2024 NAV).
CUBE and Hg unite to create
industry defining regulatory compliance and risk
platform
LONDON, UK: 20th
March,2024
CUBE, a global leader in
Automated Regulatory Intelligence (ARI) and
Regulatory Change Management (RCM) technology, announces today that it has secured a significant
investment from Hg, a leading investor in European and
transatlantic software and services businesses.
The strategic partnership will see
Hg invest alongside CUBE's founder and CEO, Ben Richmond, and marks
a pivotal step in CUBE's mission to revolutionise regulatory
intelligence and change management in highly regulated
industries.
Since 2011, CUBE has established
itself as a trusted partner for many of the world's leading banks,
insurers, asset managers and other highly regulated enterprises to
deliver its cloud-based regulatory technology solutions to automate
legal, compliance and risk functions.
CUBE's platform offers a
comprehensive and robust source of classified, and meaningful
AI-driven regulatory data covering every regulated country and
territory across the globe. Headquartered in the UK, CUBE has
operations across Europe, North America, Asia and
Australia.
Ben Richmond, Founder and CEO
of CUBE, said: "The solutions we
provide to our customers are mission-critical and demand the
highest standards of accuracy and data quality. To deliver this at
a global scale requires significant resources and infrastructure to
ensure customers are always one step ahead of their evolving
regulatory obligations. With Hg's vast experience and expertise in
scaling software businesses, we look forward to accelerating our
growth and continuing to deliver innovative regulatory intelligence
and change management solutions that customers can depend upon in
the long term."
Richmond
continues: "From foundation, CUBE
has embraced the use of AI in everything we do and now in the era
of generative AI the opportunities to drive further customer value
in both realising efficiencies and reducing risk are significant.
Quality and governance of AI is at the forefront of customers'
agendas and CUBE will continue to invest significantly to deliver
the industry's highest standards in this regard along with
continued market-leading innovation, ultimately creating an
industry defining regulatory compliance and risk
platform."
With $6.5bn invested in the
regulatory, compliance and financial technology sectors alone, Hg
invests in technology companies that are transforming their
industries. Hg will leverage this deep sector expertise to support
CUBE in its next phase of growth, providing strategic guidance and
operational support to help the company scale its business, enhance
its product offering and expand its global footprint through both
organic growth and acquisitions where synergies exist for CUBE's
regulatory platform.
Christopher Fielding, Partner
at Hg, said: "CUBE is an excellent
example of a business that is using technology to solve real and
pressing challenges for regulated industries. We have been
impressed by CUBE's innovative approach to regulatory intelligence
and change management and the strong demand for its solutions
amongst regulated firms across the globe. Ben is a visionary for
this sector and we are excited to partner with him and the CUBE
team in achieving their growth ambitions."
Thomas Martin, Principal at
Hg, said: "We have spent the last
two years focusing on this sector and it's clear that CUBE has
built a unique platform that scales to the most demanding customer
requirements and is highly differentiated in its ability to
deliver. We are excited to be working with CUBE and their customers
over the coming years building out transformational capabilities in
managing compliance risk."
The terms of the transaction have
not been disclosed.
For further details:
Hg
Tom Eckersley
+44 (0)208 148 5401
HgCapital Trust
Laura
Dixon
+44 (0)20 8396 0930
Brunswick
Azadeh
Varzi
+44 (0)207 404 5959
Hg@brunswickgroup.com
About HgCapital Trust plc
HgCapital Trust plc, whose shares
are listed on the London Stock Exchange (ticker: HGT.L), gives
investors exposure through a liquid vehicle to a portfolio of
high-growth private companies in the software and services sector.
The selection of new investments and creation of value in these
businesses are managed by Hg, an experienced and well-resourced
private equity firm with a long-term track record of delivering
superior risk-adjusted returns for its investors. For further
details, please see www.hgcapitaltrust.com.
The contents of the Hg, HgCapital Trust and CUBE's websites
are not incorporated into, and do not form part of, this
announcement.