RapidRatings Announces $200 Million Growth Investment Led by Spectrum Equity, 22C Capital
Investment enables RapidRatings to deepen focus on enhancing visibility into financial health of public and private companies to assess supply chain, counterparty risk
NEW YORK–(BUSINESS WIRE)–RapidRatings (“The Company”), the leading provider of financial health data and analytics, today announced that it received a $200 million strategic investment led by Spectrum Equity, a leading growth equity firm focused on software and data services companies, along with 22C Capital. This new investment will support RapidRatings’ mission of helping its customers identify and mitigate risk within their networks by providing greater visibility into the financial health of suppliers and other third-parties. FTV Capital, which led a $30 million investment in RapidRatings in 2018, will remain on the board and continue to support the company as an investor.
RapidRatings’ Financial Health System is transforming the way the world’s leading companies manage supply chain and third-party risk. The platform provides the most sophisticated analysis available to measure the financial health of public and private companies, with predictive insights for third-party partners, suppliers, vendors, customers and securities issuers. Its secure membership platform, The FHR Exchange™, fosters transparency in business, where all companies, from large public enterprises to private suppliers and vendors, can share and access financial health ratings, analytics, and other critical information—to grow and protect their businesses.
“The need for greater insight between companies and the financial health of their suppliers will only grow as global supply chains continue to see strain and credit markets tighten,” said James Gellert, who will continue in his role as CEO and Chairman of RapidRatings. “With FTV’s and LLR’s partnership over the last several years, we have significantly expanded our offering and achieved tremendous growth. The new investment from Spectrum and 22C gives our firm a mandate to strategically double down on our promise to create better financial visibility between our clients and the companies they depend on every day.”
“We have a long history investing in companies that help their customers manage risk,” said Chris Mitchell, Managing Director of Spectrum Equity. “RapidRatings occupies a unique position in the financial ratings ecosystem, as a result of its insight into both public and private companies and its ability to access private company data. We see enormous opportunity to help both Fortune 1000s and smaller businesses assess the health of their counterparties, and we’re looking forward to supporting the company’s continued growth trajectory.”
“Helping companies deal with public and private company financial data is a long-time passion for our firm,” said Randall Winn, Managing Partner of 22C. “Alongside Spectrum and FTV, we are excited to support RapidRatings’ management team by leveraging 22C’s expertise and resources in scaling data collection, product innovation and commercial operations.”
“I’ve long admired Spectrum’s track record of successful investments in financial analytics and counterparty risk companies. Similarly, the 22C Capital team brings us a roadmap for success in the space, one grounded in their founding and scaling of Capital IQ, that will be invaluable as we execute on our strategic vision,” added Gellert. “I look forward to working closely with Chris Mitchell and Mike Farrell from Spectrum and Colleen Coda from 22C, all of whom will be joining the company’s Board of Directors.”
Kirkland & Ellis LLP and Bryan Cave acted as legal advisors and Raymond James acted as financial advisor to RapidRatings. Latham & Watkins LLP acted as legal advisors to Spectrum Equity and Sidley Austin LLP acted as legal advisors to 22C Capital.
Further terms of the transaction were not disclosed.
RapidRatings® sets the standard for financial health transparency between business partners, transforming the way the world’s leading companies manage enterprise and financial risk. RapidRatings provides the most sophisticated analysis of the financial health of public and private companies in over 140 countries worldwide. The company’s predictive analytics provide insights into how suppliers, vendors, and other third parties are likely to perform. For more information, visit rapidratings.com.
About Spectrum Equity
Spectrum Equity is a leading growth equity firm providing capital and strategic support to innovative companies in the information economy. For over 25 years, the firm has partnered with exceptional entrepreneurs and management teams to build long-term value in market-leading Internet-enabled software and data services companies. Representative investments in risk management include Business Monitor, Ethoca, Origami Risk, Quantile, RiskMetrics, Verafin, World-Check, and Zenwork. For more information, including a complete list of portfolio investments, visit www.spectrumequity.com.
About 22C Capital
22C Capital is a private investment firm committed to delivering capital and critical resources to companies operating at the intersection of technology enablement and data analytics adoption. The firm has a dedicated focus on the business services, healthcare and financial services sectors. 22C partners with world-class management teams to build companies that are leaders in their respective markets. The firm’s operational and technology resources, including its affiliated data science organization, deliver practical, real-world support to help convert businesses’ challenges into opportunities and unlock their full potential.
Peter Gavaris, The Bliss Group