Insight injects $75m into Fenergo

JosУЉ Rojo
15 July 2015

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New York-based Insight Venture Partners has invested $75m in Irish financial software developer Fenergo.

The stake to be held by Insight in Fenergo remains undisclosed, but market sources revealed the firm will become a majority shareholder. The New York-based firm invested alongside the business's management team, according to these same sources.

The fresh funds will allow Fenergo to expand internationally from its current presence in Ireland, the UK, Poland, the US and Australia. A focus will be placed on research and development and the establishment of partnerships with other players in the sector, with plans to set up a Fenergo University and a consulting accreditation programme.

The software developer expects to sustain the growth it has witnessed among its bank and capital market client base as the industry faces mounting regulatory requirements. According to its estimates, usage for its client lifecycle management software suite has doubled year-on-year over the past three years.

Insight's investment in Fenergo comes two years after the business secured €4m from Investec Ventures, according to unquote" data. The funding round, announced in October 2013, saw the UK-based VC deploy equity via its Ulster Bank Diageo Venture Fund, alongside previous backers.

This is the second deal by Insight involving a UK software company in the past few weeks. At the end of June, the VC picked up cloud-based software developer Fourth from ECI Partners, which had backed the MBO of the business in 2011.

The transaction is the latest in a wave of investments in the fintech sector. The London-based scene has been notably active, with a Sapphire Ventures- and Rakuten-financed $18m series-B round for international payments firm Currency Cloud Global in June and Founders Capital's investment in online asset management platform Brickvest earlier in July.

Company
Founded in 2009, Fenergo is a software developer specialising in regulatory, data and onboarding solutions for clients within the financial sector such as investment banks and asset managers.

Headquartered in Dublin, the business operates additional offices in London, Wroclaw, New York, Boston and Sydney.

People
The transaction was led by Insight managing director Peter Sobiloff. Marc Murphy is CEO of Fenergo.

Advisers
Equity – Willkie Farr & Gallagher, Gordon Caplan, Matthew Guercio (Legal).
Company – Arma Partners (Corporate finance).