The Bank of Ireland Kernel Capital Growth Fund has sold the majority of its interest in portfolio company Corlytics to Verdane, a Norwegian private equity firm, for an undisclosed sum.
The deal is part of a transaction in which Verdane bought 80% of the equity of the company with the balance retained by the Bank of Ireland Kernel Capital Growth Fund, Infinity Capital, the executive team and others.
Kernel provided Corlytics very first round of investment of €100,000 in 2014 and has subsequently invested a total of €4.95m, with the most recent investment being September 2023.
Corlytics is relied upon by 40% of the top 30 "Systematically Important Financial Institutions" - a bank, insurance, or other financial institution that US federal regulators determine would pose a serious risk to the economy if it were to collapse. A SIFI is viewed as "too big to fail" and imposed with extra regulatory burdens to prevent it from going under.
Its clients include ING, BNY Mellon, Barclays, Swiss Re and ScotiaBank.
"We are delighted to see a strong return on investment for all our shareholders and in particular the Bank of Ireland Kernel Capital Funds which have been long-term strategic and financial supporters of the company," John Byrne, the founder and chief executive of Corlytics said.
"This is a great result demonstrating how an initial seed investment became the catalyst for substantial growth and inward investment. Verdane is an ideal partner enabling Corlytics expand its operations in Dublin and consolidate its position as one of the world's leading global RegTech Software consolidators," Ger Goold, Partner at Kernel Capital, said.
"We are excited to partner with Corlytics and look forward to leveraging our expertise in helping European software leaders to grow, both organically and through strategic acquisitions, as well as bringing our international industry networks to help Corlytics continue to thrive and succeed as it expands globally," Sebastian Wintgens from Verdane said.
