HgCapital Trust's Strategic Investment in Empyrean Solutions
Recently, Hg, a prominent manager of HgCapital Trust plc (LSE:HGT.L), revealed its strategic investment in Empyrean Solutions, a leader in risk and performance management software for financial institutions. This significant injection of approximately £11.7 million from HgCapital Trust (HgT) will also see additional support from other institutional clients via the Hg Mercury 4 Fund.
Investment Goals and Future Prospects
This transaction aligns with Hg's ongoing strategy to back high-growth private companies within the software and services sector. Following this investment, HgT will hold an impressive £418 million in liquid resources available for future investments, which constitutes around 17% of the pro-forma net asset value (NAV) as reported as of September 30. Furthermore, this move will decrease HgT's outstanding investment commitments in Hg transactions to approximately £681 million.
Empyrean Solutions: A Leader in Financial Software
Empyrean Solutions, based in Woburn, MA, stands out for its innovative and integrated solutions that tackle key issues faced by finance teams at various financial institutions. With its cloud-based platform, Empyrean is taking transformative steps to process vast data sets, revolutionizing the operations of the 'Office of the CFO' within these organizations. The company has experienced robust growth, boasting a remarkable 40% annual revenue increase since 2017, and currently serves over 270 financial institutions.
Enhancing Product Offerings and Market Growth
The capital from Hg is poised to boost Empyrean’s product roadmap, particularly in developing more tailored software solutions for the 'Office of the CFO.' Additionally, the funding will facilitate expanded sales and marketing strategies to cater to the surging demand in the industry. Recently, Empyrean has celebrated notable successes, including the rollout of a new Budgeting and Planning module, which gained traction with 110 customers within just its first year. Moreover, the company has received prestigious recognition from Chartis Research as a leader in ALM RiskTech and Financial Planning & Budgeting.
Leadership's Vision and Continued Support
Chris Maclin, the CEO of Empyrean Solutions, has expressed great optimism regarding the partnership with Hg. He emphasized that this investment will fortify the company's capabilities to address the evolving needs of CFOs in financial institutions and will further drive innovation in their offerings. Spectrum Equity, a current investor in Empyrean, is also set to participate alongside Hg in this transaction.
Transaction Details and Advisory Team
While the specifics of the transaction remain undisclosed, it is contingent on certain closing conditions. Piper Sandler has been appointed as the exclusive financial advisor for Empyrean, with Choate, Hall & Stewart LLP acting as their legal counsel. Additionally, Raymond James and Kirkland & Ellis LLP will serve as advisors to Hg during this exciting development.
Frequently Asked Questions
What is Hg's recent investment about?
Hg has invested approximately £11.7 million into Empyrean Solutions to enhance their software offerings for financial institutions.
How will the investment benefit Empyrean Solutions?
The funding will accelerate Empyrean's product development, particularly in cloud-based financial solutions for CFOs, and will expand their marketing efforts.
What recognition has Empyrean Solutions received recently?
Empyrean has been recognized by Chartis Research as a leader in ALM RiskTech and Financial Planning & Budgeting.
How much liquid resources does HgT have post-investment?
Following the investment, HgT will have approximately £418 million in liquid resources for future investments.
Who are the advisors for this transaction?
Piper Sandler is the exclusive financial advisor to Empyrean, while Raymond James and Kirkland & Ellis LLP are advising Hg.
