Hg invests in Riskalyze

RNS Number : 7857J

HgCapital Trust PLC

25 August 2021

 

Hg, the Manager of HgCapital Trust plc ("HGT"), today announces an investment in Riskalyze, Inc., an industry-leading, risk-centric wealth management platform serving financial advisors, enterprises, and asset managers.

Terms of the deal are not disclosed

HgCapital Trust plc will invest approximately £9 million in Riskalyze, with other institutional clients of Hg investing alongside HGT through the Hg Mercury 3 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 HGTs share of Hg's overall investment in Riskalyze.

HGT's liquid resources available for future deployment (including all announced transactions, and equity raised via tap issuance) are estimated to be £161 million (11% of the 31 March 2021 NAV of £1.5 billion).

The investment will reduce HGT's outstanding commitments to invest in Hg transactions to approximately £413 million (28% of the 31 March 2021 NAV).

HGT will be announcing the interim results for the first six months to 30 June 2021 on 6 September 2021.

RISKALYZE RECAPITALIZED BY HG

Industry-leading risk-centric, wealth management platform gains backing of one of the world's leading software investors

Founder and CEO Aaron Klein to continue leading the firm

AUBURN, CALIFORNIA, USA and LONDON, UNITED KINGDOM - August 25^th, 2021 - Riskalyze , Inc., an industry-leading risk-centric wealth management platform serving financial advisors, enterprises, and asset managers; and Hg , a leading global investor in software and services, today announced a definitive agreement for Hg to acquire a majority interest in Riskalyze. Terms of the deal are not disclosed.

Riskalyze's industry-leading client and portfolio risk technology is rapidly emerging as an industry standard for advisor, client and portfolio risk analytics across the US wealth management ecosystem. Today, Riskalyze's platform supports tens of thousands of financial advisors who use it to manage millions of client accounts with over $400 billion in assets.

The transaction marks a major inflection point for the fast-growing company, enabling the business to continue to invest in its strategy to serve the advisor desktop, providing risk, portfolio analytics, proposal, trading and compliance solutions to advisors and wealth management enterprises. The company has added thousands of advisors to the platform in the last 12 months, and has signed key enterprise clients such as Cetera, Atria Wealth, Grove Point, Hightower, Boston Private and Private Advisor Group. 

Riskalyze Co-Founder Aaron Klein will reinvest the majority of his holdings into the recapitalized firm, and continue to lead the company as CEO and a member of the Board of Directors.

"We are thrilled to welcome Hg to Team Riskalyze and are excited to have found the perfect partner to write this next chapter of our story," said Klein. "When we set out on this journey a decade ago, we quickly came to realize that we weren't just building a company, but a movement - and the tens of thousands of advisors who comprise the Fearless Investing Movement took a big step forward today into a future of innovation and growth."

For Hg, the deal represents an opportunity to support a leading software as a service (SaaS) platform and to build and scale a strong wealth management technology business in the United States. Hg is a software and services investor with extensive experience in the global fintech sector, having invested in over 10 fintech leaders in just over five years and investing over $1 billion in the sector to date. Hg has a track record of partnering with founder teams of high-quality and scalable technology solutions to the financial advisor ecosystem. This scale and experience will provide Riskalyze with ample access to additional capital and expertise as needed to complete future acquisitions or to support organic growth.

Max Dewez , Director at Hg in New York, said: "Riskalyze has seen significant momentum in the last few years. The team have successfully established themselves as providing a best-in-class SaaS tool that solves real business challenges in a sector still seeing increasing tech adoption. Riskalyze's software enables advisors to participate in key trends in wealth management and offer more holistic engagement with their clients.  We're delighted to join the team and support the momentum of a modern software business of scale, backed by a visionary founder CEO and strong supporting team."

Riskalyze was advised by Financial Technology Partners as financial advisor and Morris Manning & Martin as legal counsel. Hg was advised by Skadden Arps as legal counsel. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close before the end of September. Hg's  Sebastien Briens , Max Dewez and  Richard Earnshaw  will join the Board after closing.  The company expects to announce additional board appointments in the near future.

For further details:

Hg

Laura Dixon  [phone]

Brunswick

Samantha Chiene  [phone]

[e-mail]

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 Riskalyze websites are not incorporated into, and do not form part of, this announcement.

 

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