Floreat backs cyber security and 'RegTech' market with two major technology investments

Floreat has backed two privately-owned start-ups as part of its growth strategy in the private equity market. 

Floreat Principal Investing, headed up by Jeff Sinclair, has invested in cyber security business Senseon, and ‘RegTech’ business Encompass, with the two privately held businesses offering attractive routes to access these growing areas. 

Sinclair, Managing Director at Floreat Principal Investing, said both businesses are examples of the opportunities available to private equity investors in the cutting-edge technology sector.

"By 2022, the global cyber security market is estimated to be worth $232 billion, according to data website Statista. RegTech spending is expected to make up 34% of all regulatory spending by 2020 and KPMG forecasts that total RegTech spending is forecasted to reach $76 billion by 2022," he says.

"This not only highlights the scale of the challenge facing firms, but also the size of opportunity for investors."

Two prime examples of opportunity in the private market are Senseon and Encompass. Senseon uses pioneering artificial intelligence and machine learning to inform firms of cyber threats in real time, every second of the day. By automating the gathering of cyber intelligence, it allows firms to stay one step ahead of hackers. 

Meanwhile Encompass, which recently undertook a $20m raising via private investors, provides automated ‘know your customer’ services for the financial and legal sectors. It uses robotic learning to speed up the process, offering greater protection of data and ensuring firms are safely complying with regulation. 

"These businesses are scalable and revenue-generating, which are two key things we look for when analysing potential investments," Sinclair said. 

"As long term investors who like to hold businesses for more than 5 years, these two companies both embody the type of company we seek to back."

Part of Floreat Group, the independent and privately held investment group headquartered in Mayfair, London, Floreat Principal Investing utilises Floreat’s unique co-investment strategy when approaching any investment it makes.