HCS Capital Partners completed a US$1m investment Ceptinel LLC, a Chilean fintech startup which specializes in regulatory technology (RegTech).
(Business Wire) HCS Capital Partners (“HCS”) a Miami based Private Equity and operating firm, announced today it has completed a $1mm initial investment in Ceptinel LLC. This investment represents HCS’s third investment of 2018, having already completed a $4mm USD investment in Figo Pet Insurance and $1.5mm investment in WE Technologies Holdings. This investment marks their continued focus on Digital Disruptions: InsurTech, FinTech and HealthTech opportunities in the United States and South America.
Ceptinel is a Chilean based FinTech company founded in 2016 and that specializes in Regulatory Technology (RegTech). Ceptinelspecializes in providing financial institutions a range of tools to monitor and adhere to regulatory and compliance requirements. Ceptineluses Complex Event Processing (“CEP”) and Machine Learning to satisfy a variety of complex institutional needs including Risk Management, Automated Audit, Market Abuse (i.e. anti-money-laundry) and many other compliance and risk related activities.
Ceptinel’s technology transmits data securely, at industry leading speeds with on-site or cloud-based installation options. They can create unique alerts, bespoke automation and reports using BI technology. Ceptinel has been able to create significant market differentiation based on their effective, unique and interoperable software offerings that can work in real-time such as to prevent transactions or events from taking place.
The RegTech industry has been growing very rapidly due to the emergence of new technology powered by Machine Learning and fueled by the exponential increase in regulation (increase of over 450% since 2008). Compliance has become one of the top priorities for CEOs at financial firms, since regulatory fines have increased by a factor of 45 in Europe and the U.S. amounting to over $300 Billion since 2008. Globally, financial firms spend over $100 billion annually and is expected to reach $120 billion by 2020.
About HCS Capital
HCS Capital Partners is a Miami based global Private Equity and operating firm. They specialize in identifying unique opportunities within established markets and take active roles in the investment by leveraging over 15 years of deep industry knowledge and transformation management experience. They take majority and minority positions in companies located in the U.S. and Latin America, who operate technology-enabled platforms able to create digital disruptions in Insurance, Financial Services and Healthcare. They own and utilize unique machine learning and analytics assets including Portendo Analytics, which are often used to create differentiating value for their portfolio companies. HCS closed a $10mm round for its Tech Fund I in late 2017 and will begin raising for Tech Fund II in Q3 2018.
HCS Capital Partners
Ryan M. Smith