GrowthCurve Capital Acquires Majority Stake in Fintech Software Firm PureFacts

Toronto-based revenue management software firm PureFacts has sold a majority stake in its business to New York City-based private equity firm GrowthCurve Capital. Although the purchase price and equity share acquired were not publicly disclosed, sources familiar with the transaction informed The Globe and Mail that the deal values PureFacts at approximately $250 million, though the specific currency was not specified. This transaction marks a significant development in PureFacts' growth journey and its evolution within the wealth management technology sector.

Robert Madej, the founder and CEO of PureFacts, shared his reflections on the company’s journey, stating, “We have come a long way since our humble roots as a small, Canadian wealthtech firm.” This sentiment highlights the progress PureFacts has made since its inception in 1997, transitioning from a nascent startup to a leading provider of revenue management solutions for the wealth management industry.

A statement from PureFacts announcing the deal emphasized that Madej and the company's employees will retain their interest in the firm following the transaction. This arrangement is crucial as it ensures continuity in leadership and maintains the company's culture and strategic direction. Madej further revealed to The Globe that equity investors Round13 Capital and the Canadian Business Growth Fund sold all their shares as part of the deal. Both firms had previously participated in PureFacts’ $37-million funding round in December 2021, and Round13 had also invested in the company’s $20-million CAD funding round in 2020. The exit of these investors signals a successful return on investment and a robust growth trajectory for PureFacts.

Founded in 1997, PureFacts offers a comprehensive suite of solutions designed to assist wealth management, asset management, and asset-servicing firms in managing and growing their revenues. One of the company’s flagship offerings, PureRevenue, provides users with the tools to calculate, collect, distribute, and optimize their revenue streams, which is essential for firms looking to enhance their financial performance and operational efficiency. This capability is increasingly critical in today’s competitive market, where firms must leverage technology to stay ahead.

PureFacts serves a diverse clientele across various regions, including Canada, Europe, the United Kingdom, the Asia-Pacific region, and the United States. The company claims to have supported an impressive $10 trillion in assets under management, highlighting its significant role in the industry. Additionally, PureFacts manages approximately $2 billion in revenues annually and has established a broad customer base of over 125 clients across Canada, the United States, Europe, and Asia. This extensive reach underscores the company’s capability and reputation as a trusted partner in wealth management technology.

The partnership with GrowthCurve Capital is expected to provide PureFacts with enhanced resources and strategic support to accelerate its growth trajectory. This collaboration will likely enable PureFacts to invest further in product development, innovate its offerings, and enhance customer service, all of which are essential for maintaining competitiveness in the rapidly evolving wealth management technology landscape.

As the demand for sophisticated revenue management solutions continues to grow, PureFacts is well-positioned to capitalize on emerging opportunities in the market. With its solid foundation, experienced leadership, and the backing of a reputable private equity firm, PureFacts is set to embark on the next chapter of its journey, driving innovation and delivering value to its clients in the wealth management sector.