Key Industry Trends
Innovation and the competitive landscape are being driven by a number of secular trends, including:
- Pervasive Regulatory and Compliance Environment
Regulator and corporate risk focus remains a centerpiece requirement following landmark regulatory and law changes. The regulator risk burden is shifting to external risk assessment including all third party exposure.
- Managing Exposure is a Major Challenge for Companies
The complexity of managing risk and staying compliant is increasing at an exceptional rate with greater focus on third-party exposure, not just direct suppliers.
- Untapped Potential Offers Significant Prospects for Growth
Compliance technology spending is ~$20-$30 billion market opportunity. Growth CAGRs for the industry suggest double-digit growth, with new compliance markets such as third party management expected to grow in the 30%+ range.
- Highly Fragmented Landscape
No single solution or service provider stands out as the de facto platform for risk and compliance. Smaller scale and the large scope of providers limits the range of solutions available to large enterprises.
- Outsourcing of Critical Functions
Corporates are focused on excelling within core competencies and are increasingly turning to third party providers for expertise and/or automation of core operations and functions.
- Migration to the Cloud
Demand for cloud-based technologies and SaaS delivery models enables providers to achieve scale and take advantage of significant operating leverage and cost savings.
- Risk of “Big Data”
The explosion of data, especially unstructured data that companies must continue to manage for decision making is enabling transformative meta-level analyses in fraud detection, predictive modeling, micro-targeting and resource allocation.
Opus plans to explore opportunities in a number of financial technology subsectors that best exhibit the key investment attributes discussed.
Regulatory & Compliance
- Third Party Management
- Audit Management
- Board, Entity & Governance Management
- Business Continuity Management
- Compliance & Ethics
- Corporate Social Responsibility (CSR)
- Financial Risk Management
- Enterprise and Operations Risk
- Fraud and Corruption
- Health, Safety and Environment
- HR and Staffing
- IT Infrastructure and Operations
Asset Management, Markets and Trading Technology
- Risk Systems
- Order Management
- Execution and Market Making
- ATS/ECN and other venues
- Treasury Management
- STP & Reference Data
Payments Risk Management
- Fraud Prevention and Analytics
- Risk Management
- Regulatory and Compliance
- Cybersecurity and Fraud
In the Fall of 2013 GTCR and Doug Bergeron formed a second partnership to build Opus, a differentiated technology business, through acquisitions and organic growth.
Key requirements include:
- Businesses with focused end-market capabilities in the burgeoning enterprise risk and compliance end-markets
- Business with strong, scalable existing products and services with potential for increased penetration into existing client base
- Business models with significant recurring revenue and potential operating leverage
- Businesses lacking sufficient global exposure, with the opportunity to expand and scale in international markets
- Businesses that can be “carved out” of larger institutions and operated on a standalone basis
- Businesses with unrealized intrinsic value, or undergoing management transition
- Businesses that are able to provide a platform for consolidation within a fragmented and competitive landscape