Novatus Global Limited (“Novatus” or “the Company”), an award-winning provider of regulatory technology solutions to global financial institutions, today announced it has secured a $40 million investment from Silversmith Capital Partners, a Boston-based growth equity firm.
Since its founding by industry veterans in 2019, Novatus has established itself as a trusted partner to many of the world’s largest banks, asset managers, and financial institutions - evidenced by revenue that has more than tripled over the trailing twelve months. The growth funding will enable Novatus to continue to invest deeply in the technology underpinning of its best-in-class SaaS platform while also expanding its geographic footprint, ensuring it maintains its reputation as the partner of choice for its clients.
Novatus enables its customers to meet their most complex, mission-critical regulatory and compliance requirements, be they government or industry-driven. Its flagship product, Novatus En:ACT, is a market-leading SaaS platform that ensures accurate, complete and timely reporting to satisfy the flood of ever-changing global regulations for which Novatus customers are responsible. En:ACT is a fully-scalable, cloud-native platform trusted by major global firms to reconcile both source systems and submission files and for all G20 transaction reporting regimes. In addition, Novatus offers expert-led advisory services, leveraging its SaaS solution and decades of industry experience, to help clients of all size and maturity solve their most complex compliance, risk management, ESG and organizational transformation challenges.
"We are delighted to partner with Silversmith as we embark on the next chapter of our growth journey. Silversmith shares our values and vision - particularly our passion for building great products to make our clients’ daily lives better, safer and more efficient,” said Novatus Co-Founder and Partner, Andrew Hedley. “This investment will be used to double down on that commitment to innovation while also fueling our continued international expansion, particularly in North America following our successful entry into Australia last year. It is a real privilege to work with such brilliant people across our team and we are incredibly excited for the next chapter of growth."
“When we founded the company in 2019, we had a leg up on the market - Andrew and I had both lived this problem first-hand. As a result, we wanted to provide a solution that would solve the complexity of transaction reporting in a novel way - driven by powerful, automated underlying technology as opposed to human intervention,” added Novatus Co-Founder and Partner, Matthew Ranson. “With deep experience in the GRC and regtech markets, Silversmith recognized the uniqueness of En:ACT in attacking the problem with fresh eyes and harnessing the massive innovation being driven by AI and machine learning. We look forward to working closely with Todd, Ned and the Silversmith team to achieve our vision of creating the single best platform of its type anywhere in the world.”
“At Silversmith, our investment philosophy is quite simple to articulate, though much more difficult to implement - identify great founders who have built solutions to real-life customer problems. While company building takes enormous effort and will, we’ve found over time that if you get that first part right, the rest tends to take care of itself,” said Ned Kingsley, Principal at Silversmith. “We feel incredibly lucky to have found two such individuals in Andrew and Matt who have re-imagined the way to solve an increasingly important customer problem. We couldn’t be more excited to support their continued growth alongside Maven Capital Partners.”
“We are excited to continue our partnership with Novatus following the investment from Silversmith. We were originally attracted to the business due to its innovative, and technology-led approach in supporting clients meet their regulatory obligations,” said Alan Robertson, Partner at Maven. “Since Maven’s initial investment, clients’ adoption of the En:ACT platform has resulted in a 13-fold increase in annual recurring revenues and international expansion. We remain committed to supporting Novatus as they scale globally and further enhance their market-leading platform to continue to deliver for its clients. We believe in the future potential of the business and look forward to working with both Management and Silversmith in helping achieve the Company’s ambitions.”
As a part of the investment, Todd MacLean and Ned Kingsley have joined Novatus’ Board of Directors. Wilson Sonsini Goodrich & Rosati acted as legal counsel to Novatus on the transaction. Kirkland & Ellis served as legal counsel to Silversmith Capital Partners and KPMG served as financial advisors. Burness Paull acted as legal counsel to Maven Capital Partners.