REG - HgCapital Trust PLC - Hg announces investment in CUBE

HgCapital TrustAnnouncement

20/03/2024 12:30

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RNS Number : 6374H  HgCapital Trust PLC  20 March 2024

 

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: 20(th) 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.

 

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