Latest news with #Hg
Finextra
08-05-2025
- Business
- Finextra
UK regtech Cube opens London office
CUBE, a global leader in Automated Regulatory Intelligence (ARI) and Regulatory Change Management (RCM), has officially opened its new global headquarters located at the iconic City of London building, Tower 42, and confirmed the impressive growth trajectory of the company over the last year - doubling of revenue, employees and the number of countries CUBE now operates in. 0 The new cutting-edge AI Centre of Excellence, RegBrain AI Lab, signals the multi-million pound investment CUBE is making to advance the role of innovation and AI in regulatory intelligence, compliance and risk across the financial services sector and adjacent regulated industries. Alongside the unveiling of its new headquarters, CUBE has made a commitment to create 200 jobs over the next 12 months, half of which are expected to be based in the UK. The opening of CUBE's new headquarters follows a transformative year of strong growth, supported by its strategic partnership with Hg, a leading investor in European and Transatlantic software and services businesses. CUBE has increased its revenue by over 200% in the last year and now serves 1,000 customers globally, and has significantly grown its global team footprint – which now stands at 700 employees across 20 countries. In the year CUBE also completed two landmark US-based acquisitions acquiring three regulatory intelligence businesses. Commenting at the launch of CUBE's new global headquarters, CUBE's Founder & CEO Ben Richmond, said: 'We chose an iconic City of London location for our new global headquarters as we believe it's the perfect place to continue CUBE's growth. London is unquestionably a world-class tech hub and a global leader for AI and innovation. We're proud to further build out our global operations and investment from the UK and aim to be a benchmark for building successful global tech businesses here. Our performance in the last year highlights the progress we have made so far.' Since launching in 2011, CUBE has become a leading global regulatory technology company partnering with some of the largest financial institutions globally who leverage CUBE's platform to streamline their complex regulatory intelligence and change management processes. In addition, CUBE recently launched RegPlatform™ Intel, its latest purpose-built solution to help financial services firms in the mid-market remain compliant in today's ever-changing global regulatory landscape. Richmond continued: 'We've experienced considerable growth over the past year and we wanted a global HQ that reflects the ambition and scale of our expanding team. We want to reimagine the future of work and how we collaborate with customers, which is why we created a space that fosters partnership and drives continuous technological innovation. Our new AI Centre of Excellence – RegBrain AI Lab – will be at the forefront of AI innovation. We will continue to deliver smart, agile solutions for our customers in response to the rapid pace of global regulatory change.' CUBE's base of strategic and long-term customers will benefit from open access to the facilities in its new global headquarters, which not only includes the RegBrain AI Lab but also an innovative RegTheatre and RegCinema. These have been purposefully designed to drive collaboration with industry participants across the financial services sector to progress the role of innovation and AI in compliance and risk.
Associated Press
08-05-2025
- Business
- Associated Press
CUBE OPENS NEW GLOBAL HQ AND AI CENTRE OF EXCELLENCE IN CITY OF LONDON
LONDON, May 8, 2025 /CNW/ -- CUBE, a global leader in Automated Regulatory Intelligence (ARI) and Regulatory Change Management (RCM), has officially opened its new global headquarters located at the iconic City of London building, Tower 42, and confirmed the impressive growth trajectory of the company over the last year - doubling of revenue, employees and the number of countries CUBE now operates in. The new cutting-edge AI Centre of Excellence, RegBrain AI Lab, signals the multi-million pound investment CUBE is making to advance the role of innovation and AI in regulatory intelligence, compliance and risk across the financial services sector and adjacent regulated industries. Alongside the unveiling of its new headquarters, CUBE has made a commitment to create 200 jobs over the next 12 months, half of which are expected to be based in the UK. The opening of CUBE's new headquarters follows a transformative year of strong growth, supported by its strategic partnership with Hg, a leading investor in European and Transatlantic software and services businesses. CUBE has increased its revenue by over 200% in the last year and now serves 1,000 customers globally, and has significantly grown its global team footprint – which now stands at 700 employees across 20 countries. In the year CUBE also completed two landmark US-based acquisitions acquiring three regulatory intelligence businesses. Commenting at the launch of CUBE's new global headquarters, CUBE's Founder & CEO Ben Richmond, said: 'We chose an iconic City of London location for our new global headquarters as we believe it's the perfect place to continue CUBE's growth. London is unquestionably a world-class tech hub and a global leader for AI and innovation. We're proud to further build out our global operations and investment from the UK and aim to be a benchmark for building successful global tech businesses here. Our performance in the last year highlights the progress we have made so far.' Since launching in 2011, CUBE has become a leading global regulatory technology company partnering with some of the largest financial institutions globally who leverage CUBE's platform to streamline their complex regulatory intelligence and change management processes. In addition, CUBE recently launched RegPlatform™ Intel, its latest purpose-built solution to help financial services firms in the mid-market remain compliant in today's ever-changing global regulatory landscape. Richmond continued: 'We've experienced considerable growth over the past year and we wanted a global HQ that reflects the ambition and scale of our expanding team. We want to reimagine the future of work and how we collaborate with customers, which is why we created a space that fosters partnership and drives continuous technological innovation. Our new AI Centre of Excellence – RegBrain AI Lab – will be at the forefront of AI innovation. We will continue to deliver smart, agile solutions for our customers in response to the rapid pace of global regulatory change.' CUBE's base of strategic and long-term customers will benefit from open access to the facilities in its new global headquarters, which not only includes the RegBrain AI Lab but also an innovative RegTheatre and RegCinema. These have been purposefully designed to drive collaboration with industry participants across the financial services sector to progress the role of innovation and AI in compliance and risk. Photo - View original content to download multimedia: SOURCE CUBE
Telegraph
17-04-2025
- Business
- Telegraph
This essential tech trust has a raft of recession-proof picks. Investors should buy now
Questor is The Telegraph's stock-picking column, helping you decode the markets and offering insights on where to invest. Technology investing can be a roller coaster ride, as reflected by the performance of the Nasdaq in recent years. The US tech index slumped 33pc in 2022, then surged 85pc during 2023/2024 on the back of AI mania, but has since fallen 13pc in 2025 due to rising global protectionism. However, not all tech stocks have the same risk profile, as evidenced by HgCapital Trust, a London-listed fund of unquoted software businesses. The trust has delivered consistent net asset value (Nav) growth over the past decade, averaging 15pc per annum, resulting in asset growth from £500m to £2.5bn. The secret to HgCapital's success? A focus on profitable, growing companies that supply mission critical services to a diverse range of businesses, typically through cloud-based software. The trust invests via commitments to unquoted private equity funds run by Hg, one of the world's leading technology investors with assets under management of £75bn and more than 250 investment professionals. Hg started life as the private equity arm of Mercury Asset Management, but since 2000 it has been an independent entity fully owned by staff. Hg was not always a specialist technology investor but over the past 10-15 years its focus has narrowed, and now more than 70pc of HgCapital's portfolio is invested in three niches: Tax & Accounting; ERP & Payroll; and Legal & Regulatory Compliance. It also holds investments in fintech, insurance and healthcare IT. While becoming more specialist by sector, Hg has broadened its geographic focus from the UK/Northern Europe to North America. The trust's portfolio is currently held 32pc in UK-based companies, 28pc in firms based North America, 20pc in Scandinavian businesses and 20pc spread elsewhere through Europe. Hg has also broadened the size range of companies in which it invests, backing businesses valued from £100m to several billion pounds. This has enabled the trust to maintain exposure to highly successful investments over the long term while realising profits along the way. For instance, it has been invested in Visma (12.8pc net assets) since 2006, IRIS (3.2pc) since 2011 and P&I (3.6pc) since 2013. HgCapital was trading close to Nav at the start of 2025, but the share price has fallen 9.2pc to 487.5p as a result of the turmoil in global markets. This represents a discount of 10.5pc to the last published quarterly Nav of 545.5p at 31 December. Questor regards this correction as a buying opportunity for long term investors, and is encouraged by recent share purchases by the trust's directors. The trust's portfolio is in good health, with the top 20 investments (76pc by value) achieving growth of 19pc in revenues and 23pc in earnings during 2024. In addition, its portfolio has modest debt of c.30pc on average, with no meaningful debt maturities in the next two years. Of course, there is considerable uncertainty over the impact of US tariffs, but for now the direct impact on Hg's portfolio is limited as tariffs do not currently apply on software licences or cross-border services. In addition, Trump's U-turn on tariffs applied to hardware imports may ease expected pressure on IT budgets in the US. Even so, delays in purchasing decisions as a result of weak business confidence could still hit software spending. This would impact new business growth, but Hg's existing earnings are sticky as they come largely from contracted or recurring revenues – its clients are unlikely to cut spending on essential functions such as accounting, payroll or compliance. Furthermore, revenues often have inflation-linked increases baked in. Another symptom of uncertainty will be a slowdown in M&A activity. The IPO market has slammed shut, but Hg does not rely on IPOs for exits, as it principally sells its companies to corporate buyers or larger private equity firms. Hg is not a forced seller and has the ability to wait until there is greater clarity on the economic outlook. Hg does not seek to buy cheap companies and the trust's portfolio is valued on a multiple of 26.1x Enterprise Value/Ebitda, which is far higher than other listed private equity funds. This reflects the portfolio's high margins and superior growth characteristics, as well as the positive outlook for software-as-a-service, a sector benefiting from companies seeking to improve productivity and manage rising labour costs. Valuation multiples could be impacted if quoted markets remain depressed, but Hg's track record is driven by earnings growth and accretive M&A rather than multiple expansion. Crucially, the trust has a long history of exiting portfolio companies at an uplift to carrying value, averaging 15pc in 2024. HgCapital's focus is on capital growth, but it currently pays a dividend of 5.5p, equivalent to a yield of 1.1pc. Ongoing charges are 1.4pc (excluding performance fees and financing), and its impressive Nav record is net of all fees and charges. The fees charged by Hg's funds are typically 1-1.75pc of committed capital, plus 20pc of returns subject to achieving 8pc per annum realised return. However, the trust also makes co-investments alongside Hg funds that are fee-free, and these currently represent 9pc of its portfolio.
Tahawul Tech
15-04-2025
- Business
- Tahawul Tech
IFS attracts €15 billion valuation as demand for industrial AI soars
Dubai — IFS, a leading provider of cloud enterprise software and Industrial AI applications, announces it has achieved a valuation of over €15 billion following a significant pivot to AI-driven growth. The valuation comes as Hg increases its stake to become a co-control shareholder alongside EQT, with TA Associates (TA) remaining as minority shareholder. New minority shareholders also include a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) and the Canada Pension Plan Investment Board (CPP Investments). Hg and the new investors are acquiring shares in IFS from EQT, which is selling through its EQT VIII and EQT IX funds, as well as from TA and other minority investors. Mark Moffat, CEO of IFS, said: 'IFS's success and sustained growth is centred around a commitment and track record of rapidly delivering business value to our customers. We have a differentiated proposition that continues to drive momentum in the industrial setting, specifically with the agentic and generative capabilities of which enables us to be the technology of choice for the businesses that service, power and protect our planet.' Moffat continued: 'The investment and continued commitment from Hg, EQT and TA will help IFS further accelerate our journey to be the undisputed category leader of Industrial Software.' The transaction follows many successful years of growth for IFS, delivering more than EUR 1 billion in ARR (annual recurring revenue) last year. Total revenue for 2024 was over € 1.2 billion, with some of the world's largest industrial companies choosing IFS over legacy vendors. Demand for IFS's industrial AI capabilities has increased significantly over the past 12 months as organizations across IFS's focus industries of Aerospace & Defence, Engineering & Construction, Energy & Utilities, Manufacturing, Telco and Service, continue to realise the rapid and transformative value that delivers. IFS will continue to expand its capabilities with the industrial application of generative and agentic AI, so that customers can automate workflows, improve efficiency and deliver amazing moments of service to their own customers. Johannes Reichel, Partner and Co-Head of Technology in the EQT Private Equity advisory team, added, 'EQT's relationship with IFS started in 2015 and it has been remarkable to see the company's growth since then. Starting as a software vendor focused on Northern Europe, IFS has become a global provider of enterprise solutions while embracing the power of AI for the benefit of its industrial clients. It's a prime example of EQT's ability to 'run with the winners', where we partner with management teams over the long-term to scale regional players into global champions. We are excited to work alongside Hg to continue supporting IFS through this next phase.' Over the past year, IFS added 350 new customers including Exelon who adopted IFS to streamline asset maintenance across its energy grid, Rolls-Royce who is using IFS to transform service delivery of its Power Systems business, and Total Energies who is deploying IFS as the single platform for management and servicing of its global operated asset portfolio. Moreover, an increasing number of large businesses are moving to IFS which is reflected in the average deal size of IFS's largest customers increasing by 64% year-on-year. Nic Humphries, Senior Partner and Head of the Saturn funds at Hg, commented, 'With 20 years' experience investing in software, we recognise exceptional businesses when we see them. Our increased investment in IFS reflects our conviction in their long-term vision and strong execution, which enables their customers' digital transformation.' Hg increases its stake in enterprise software provider IFS and becomes co-control shareholder alongside EQT, while existing minority shareholder TA Associates remains invested New investors in this transaction include a wholly-owned subsidiary of the Abu Dhabi Investment Authority ('ADIA') and the Canada Pension Plan Investment Board ('CPP Investments') IFS continues to perform strongly, having recently surpassed EUR 1 billion in ARR while growing by more than 30% year-on-year Jonathan Wulkan, Partner at Hg, added, 'Since our initial partnership in 2022 alongside EQT, Mark and the team have not only delivered impressive and consistent growth but have emerged as a global leader in Industrial AI – translating the promise of AI into practical solutions that drive efficiency and sustainability for essential industries, with significant potential for continued growth.' Naveen Wadhera, Managing Director at TA, commented, 'IFS's exceptional leadership, strong execution, and transformative AI capabilities are redefining what's possible in enterprise software. We remain confident in the company's vision and are excited to be part of its continued journey.' The transaction is subject to customary regulatory approvals and is expected to complete end of Q2 2025. IFS and selling shareholders were advised by Arma Partners and White & Case, EQT was also advised by Evercore, and Hg was advised by Morgan Stanley & Co. plc and Skadden.
Khaleej Times
11-04-2025
- Business
- Khaleej Times
IFS attracts EUR 15 billion valuation as demand for industrial AI soars
IFS, a leading provider of cloud enterprise software and Industrial AI applications, announces it has achieved a valuation of over EUR 15 billion following a significant pivot to AI-driven growth. The valuation comes as Hg increases its stake to become a co-control shareholder alongside EQT, with TA Associates ('TA') remaining as minority shareholder. New minority shareholders also include a wholly-owned subsidiary of the Abu Dhabi Investment Authority ('ADIA') and the Canada Pension Plan Investment Board ('CPP Investments'). Hg and the new investors are acquiring shares in IFS from EQT, which is selling through its EQT VIII and EQT IX funds, as well as from TA and other minority investors. The transaction follows many successful years of growth for IFS, delivering more than EUR 1 billion in ARR ('annual recurring revenue') last year. Total revenue for 2024 was over EUR 1.2 billion, with some of the world's largest industrial companies choosing IFS over legacy vendors. Demand for IFS's industrial AI capabilities has increased significantly over the past 12 months as organisations across IFS's focus industries of aerospace and defence, engineering and construction, energy and utilities, manufacturing, telco and service, continue to realise the rapid and transformative value that delivers. IFS will continue to expand its capabilities with the industrial application of generative and agentic AI, so that customers can automate workflows, improve efficiency and deliver amazing moments of service to their own customers. Over the past year, IFS added 350 new customers including Exelon who adopted IFS to streamline asset maintenance across its energy grid, Rolls-Royce who is using IFS to transform service delivery of its Power Systems business, and Total Energies who is deploying IFS as the single platform for management and servicing of its global operated asset portfolio. Moreover, an increasing number of large businesses are moving to IFS which is reflected in the average deal size of IFS's largest customers increasing by 64% year-on-year. Mark Moffat, CEO of IFS, said: "IFS's success and sustained growth is centred around a commitment and track record of rapidly delivering business value to our customers. We have a differentiated proposition that continues to drive momentum in the industrial setting, specifically with the agentic and generative capabilities of which enables us to be the technology of choice for the businesses that service, power and protect our planet." Moffat continued: 'The investment and continued commitment from Hg, EQT and TA will help IFS further accelerate our journey to be the undisputed category leader of Industrial Software." Johannes Reichel, partner and co-head of technology in the EQT Private Equity advisory team, added: "EQT's relationship with IFS started in 2015 and it has been remarkable to see the company's growth since then. Starting as a software vendor focused on Northern Europe, IFS has become a global provider of enterprise solutions while embracing the power of AI for the benefit of its industrial clients. It's a prime example of EQT's ability to 'run with the winners', where we partner with management teams over the long-term to scale regional players into global champions. We are excited to work alongside Hg to continue supporting IFS through this next phase." Nic Humphries, senior partner and head of the saturn funds at Hg, commented: "With 20 years' experience investing in software, we recognise exceptional businesses when we see them. Our increased investment in IFS reflects our conviction in their long-term vision and strong execution, which enables their customers' digital transformation." Jonathan Wulkan, Partner at Hg, added: "Since our initial partnership in 2022 alongside EQT, Mark and the team have not only delivered impressive and consistent growth but have emerged as a global leader in Industrial AI - translating the promise of AI into practical solutions that drive efficiency and sustainability for essential industries, with significant potential for continued growth." Naveen Wadhera, managing director at TA, commented: "IFS's exceptional leadership, strong execution, and transformative AI capabilities are redefining what's possible in enterprise software. We remain confident in the company's vision and are excited to be part of its continued journey." The transaction is subject to customary regulatory approvals and is expected to complete end of Q2 2025. IFS and selling shareholders were advised by Arma Partners and White & Case, EQT was also advised by Evercore, and Hg was advised by Morgan Stanley & Co. plc and Skadden.
