Fenergo has secured EUR4m of new equity funding, which will help support the company’s continued international growth and development.
The EUR4m investment is being made by The Ulster Bank Diageo Venture Fund, managed by Investec Ventures, with co-investment from existing shareholders.
Fenergo, which develops client onboarding, enterprise compliance and data management software solutions for investment banks, plans to use the funds to further expand its global footprint across North America, Europe and Asia Pacific, and accelerate the development of its enterprise platform. This announcement builds on the company’s successes over the last year which has seen it sign four global marquee clients, including two leading North American financial institutions.
Marc Murphy, co-founder and chief executive of Fenergo, says: "We are absolutely delighted to work with Investec Ventures in securing this new round of funding. Investec’s footprint and relationships within the financial sector, combined with their team’s experience in helping enterprise software companies expand globally, make them an ideal partner for Fenergo. Having won a number of new clients this year in the US and Canada, we have reached a critical juncture in the company’s journey. We aim to use this new injection of capital to further enhance our solutions in line with client and market needs, accelerate our global growth strategy and consolidate our position as market leader. This is a significant milestone in our company’s development and I am looking forward to shaping Fenergo into a global force in the fintech space."
John Dolan, partner in Investec Ventures, says: "Fenergo is a great example of an indigenous high growth potential business led by impressive management that we and our investors are keen to support and help grow into the global market leader. The company has proven deployments with large global tier one banks and is solving a real pain-point for financial institutions who have relied primarily on labour-intensive manual processes in onboarding new clients. We believe the company is poised to become the leading technology player in addressing the increased regulatory requirements faced by financial institutions. We are delighted to complete this investment, the 16th investment from our EUR75m managed fund, and look forward to supporting the Fenergo team as they enter their next phase of growth."
Following the worst financial crisis in recent history, new and strengthened regulations – such as anti-money laundering (AML), know your customer (KYC), Dodd-Frank, FATCA, EMIR and MiFID – are driving the demand for client onboarding, compliance and reference data management solutions. As compliance obligations continue to evolve with increased regulatory oversight, heavier fines and penalties, and demands for higher quality client and counterparty data, Fenergo is positioned to capitalise on this growth trend.
Murphy says: “Fenergo offers a single enterprise platform that enables financial institutions to significantly improve efficiencies and reduce operational costs. Our world-class client onboarding workflow technology streamlines onboarding, account opening and client maintenance processes for global banks and delivers regulatory onboarding processes that ensure global compliance with regulations such as KYC, AML, Dodd-Frank, MiFID, FATCA and EMIR with clean, golden source client and counterparty data. By offering all of this on one platform solution, financial institutions can get on with the business of banking and generating revenues, while complying fully with all regulatory obligations."
Fenergo’s existing client base includes some of the largest global financial institutions including RBS, Lloyds Banking Group, Investec and Rabobank. The company is also an Enterprise Ireland client.
Following the investment, John Dolan of Investec Ventures will join the board of Fenergo.
