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

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.”

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