· Ruleguard is a fast-growing London-based SaaS leader in financial regulatory, risk and compliance (GRC)
· The investment will allow Ruleguard to scale internationally to cover a wider set of rules, markets and platform capabilities
12thousand September 2022: Foresight Group (“Foresight”), a listed private equity and infrastructure investment manager, has completed a £3.5m equity investment. Law enforcement officer (the “Company”), a London-based SaaS technology provider that supports the regulatory requirements of financial institutions.
Ruleguard was established by founder John O’Dwyer in 2013 as a software development consultancy. John saw an opportunity in 2015 and developed a software platform to support the new Client Assets Sourcebook (“CASS”) rules. Since then, Ruleguard has grown rapidly, winning business with a growing blue-chip customer base and expanding its capabilities to become one of the most competitive GRC platforms in the financial sector.
The global regulatory technology (Reg Tech) market was valued at $15.9 billion in 2020 and is expected to grow at a CAGR of 24% annually. This is driven by increased regulatory burdens, the need for firms to save costs through automation, and the size and complexity of financial institutions and regulated functions.
Ruleguard is uniquely positioned as a specialized compliance platform with a broader reach than point solution providers, while being more focused than generic enterprise-grade risk management platforms. Its platform enables clients to address the ever-increasing challenges of increasing regulatory compliance with less effort and risk, and allows them to save money on audit performance costs.
The investment from Foresight’s two VCTs, Foresight VCT and Foresight Enterprise VCT, will help the Company continue to develop additional platform capabilities while increasing sales and marketing to capitalize on a large and growing market opportunity.
Commenting on the investment, Stefan Georgiev, Investment Director of Foresight, said: “Ruleguard represents an excellent opportunity to invest in a fast growing Reg Tech business with high quality recurring revenue and excellent customer feedback. The company’s target market is large and expanding, with increased regulatory complexity requiring greater adoption of specialized technologies. Ruleguard’s diverse team is well positioned for continued rapid growth and we look forward to being part of the company’s next phase of growth.”
John O’Dwyer, CEO of Ruleguard, added: “We had a lot of interest in our capital increase in the VCT sector and had many conversations with potential partners, but Foresight was the perfect fit. What stood out was the quality of their people, their skill at building relationships, their apparent integrity and their passion for the technology sector. Foresight understood our ambitions and unique proposition for our clients better than most, and we are excited that this meeting will accelerate our growth as RegTech continues to transform the financial sector.
For more information contact:
Lucy Sherwood: [email protected] / +44 (0) 20 3763 6977
Notes for editors
Ruleguard started in 2013 as a software development and assembly agency specializing in financial services projects, particularly projects with unique requirements that are not available off-the-shelf. Innovative projects included automating KYC and onboarding processes, ladder modeling and post-trade analytics, and automating various back-office workflows of the financial services industry.
In 2015, we developed a prototype product to automate the workflows required for the new Customer Asset Rules (CASS) in response to the needs of our customers. It was an immediate success and we soon licensed the first version of what became our “Ruleguard” product to several leading financial firms.
Thanks to this early traction, we were able to secure £2.5m in funding from London-based Angel, which has supported the growth of our product suite across SMCR compliance, breach and issue management, third-party oversight and regulatory checklists offerings. Our integrated platform appealed to larger financial groups that were tired of dozens of regulatory “point solutions” when they needed a single, unified view of the execution of operations across the enterprise.
Ruleguard is now established as one of the premier RegTech offerings, providing true compliance oversight to some of the largest and most complex financial institutions worldwide.
Ruleguard has 34 staff serving over 50 clients, with recurring revenues of over £2.7m and high double-digit year-on-year growth. Our client list includes leading asset managers, wealth managers, brokers, insurance companies and banks, including Computershare, Cazenove Capital, FNZ, Link Fund Solutions, Quilter Cheviot, Santander, True Potential, Rathbones and Royal London.
About Foresight Group LLP (“Foresight”):
Foresight Group was founded in 1984 and is a leading manager of infrastructure and private equity investments. With a long-standing focus on ESG and sustainability strategies, it seeks to provide attractive returns to its institutional and private investors from hard-to-reach private markets. Foresight manages more than 330 infrastructure projects with a focus on solar and onshore wind, bioenergy and waste, as well as renewable energy projects, energy efficiency management solutions, social and core infrastructure projects and sustainable forestry. The private equity team manages ten regional investment funds across the UK and an SME Impact Fund which supports Irish SMEs. This team reviews over 2,500 business plans every year and currently supports over 200 investments in SMEs. Foresight Capital Management manages four strategies across six investment vehicles with AUM of over £1.6 billion.
Foresight operates from 13 offices in seven countries in Europe and Australia with AUM of £12.5 billion*. Foresight Group Holdings Limited listed on the Main Market of the London Stock Exchange in February 2021. https://www.fsg-investors.com/
*Based on FSG’s unaudited AUM as at 30 June 2022 and Infrastructure Capital’s unaudited AUM as at 30 June 2022, converted to Australian Dollars to Pound Sterling at an exchange rate of 0.5900.