Fenergo Reaps Investment From Insight Venture Partners
Client lifecycle management software provider will invest in expansion and innovation, aiming to become first choice for new clients, CEO says
New York private equity firm Insight Venture Partners has agreed to invest $75 million in client lifecycle management software solutions provider Fenergo. The transaction is expected to close within the next few weeks.
Dublin-based Fenergo has experienced 100% year-on-year growth for three years, driven by changing regulatory requirements for corporate and investment banks, says chief executive officer Marc Murphy. Fenergo's solutions centralize client and counterparty data to support regulatory compliance, onboard clients and ensure legal entity compliance through the client's full lifecycle with the bank. Clients include Bank of Montreal, State Street and Barclays.
Murphy says Fenergo went looking for a strategic backer following advice that such investment would make the company less risky in the eyes of larger clients.
The new capital will be invested in global expansion and innovation in order to "realize the vision we have of becoming the client lifecycle management standard," says Murphy.
"When firms go to the market needing to solve client onboarding, client maintenance, client offboarding, account opening—when they need to procure a vendor solution for client lifecycle management—we want them to think straight away, Fenergo—the way we think vacuum cleaners: Hoover. We are looking for the same association."
Murphy attributes Fenergo's growth to increasing recognition among market participants that a solid strategy around managing client, counterparty and entity data is a firm base for coping with regulation.
"We contributed to a recent study by PwC that found 75% of data is common across all these regulations," he says. "So if you get the data right and get your people using it in the right way, you've got a great chance of being able to solve these regulations affordably."
Fenergo recently opened new offices in the US, London and Sydney. It plans to hire 100 new staff in Dublin over the next two years, and to open more offices in Singapore, Tokyo, the Middle East and perhaps Toronto.
"One of our biggest challenges is that people don't know about us ... We have a sales team of five, supported by a pre-sales team of six. We need to at least triple that sales team, really get hunters in the field," says Murphy.
Peter Sobiloff, managing director at Insight Venture Partners, commented in a statement: "Fenergo is an organization with a leading brand, product and management team. We are pleased to partner with the company's team to achieve continued growth and innovation."