HgCapital Trust (HGT) has announced that its manager Hg has acquired AuditBoard, which it describes as a leading connected risk platform transforming audit, risk, compliance and ESG management, in a transaction that values AuditBoard at over US$3bn. HGT will invest approximately £87.2m in AuditBoard, with other institutional clients of Hg investing alongside HGT through the Hg Saturn 3 Fund.
Founded in 2014, AuditBoard announced earlier this year it had crossed a milestone of $200m in annual recurring revenue during late 2023. Its last funding round took place in 2018 – a Series B led by Battery Ventures, the firm’s largest institutional shareholder. AuditBoard now serves more than 2,000 enterprises, including nearly 50% of the Fortune 500.
HGT says that its liquid resources available for future deployment (including all announced transactions, the undrawn bank facility and the full year dividend paid in May 2024) are estimated to be £570m (24% of the 31 March 2024 NAV of £2.3bn) and that the investment in AuditBoard will reduce its outstanding commitments to invest in Hg transactions to approximately £739m (32% of the 31 March 2024 NAV).
HGT says that Hg will help fuel further growth at AuditBoard, as the company continues to expand its platform and global reach. HGT’s announcement says that the deal validates AuditBoard’s customer centric approach and potent combination of innovative technology – like the recently announced AuditBoard AI – and domain expertise at a time when demand for its connected risk platform and related solutions is fuelling rapid global growth.