The firm Carlyle Group Inc. has secured an investment from Accel-KKR - backed software provider Abrigo for financial institutions.
The firm, owned by Entrepreneur, is valued at more than $1 billion after investing, according to people with knowledge of the matter who asked not to be identified discussing private information.
Terms of the deal were not disclosed and Carlyle and Abrigo declined to comment on the valuation. With the transaction, Carlyle becomes an equal partner in the business with Accel-KKR, which has backed it since 2015, said Wayne Roberts, ceo of Abrigo.
Abrigo's software provides multiple services to the banking industry including fraud prevention, lending and risk management, compliance and data analytics. The company has over 2,300 customers and revenue growth of more than 30% year over year, according to a statement.
The company's products solve several pain points in the financial institutions universe while most software companies focus only on one function within the market, Roberts said in an interview.
'We have competitors in each one of them, he said. The Carlyle investment will allow the company to look at'material' and 'transformative' acquisitions, Roberts said.
There are several companies considered 'high priority' and deals could begin in several months, said Carlyle-Chie. Anna Tye has played a key role in the firm's financial technology investment investments such as Dealogic Plc.
Bloomberg News is seeking to raise as much as $27 billion for its latest flagship fund, in what would be the industry's largest private equity pool, Bloomberg News previously reported.
'This management team is a management team with a track record of successfully integrated M&A and a team that is capable of running a much larger business," she said.
'It's really focused around helping financial institutions generate revenue and operate more efficiently and in compliance with certain regulations, she said.
Carlyle was the lead financial adviser to Goldman Sachs Group Inc. on the transaction while Abrigo was advised by Raymond James, according to the statement.