A San Francisco private equity firm has acquired fast-growing financial software firm Ncontracts for an undisclosed amount.
Eleven-year-old Ncontracts markets risk management software and services to financial firms and has grown to about 140 people. It made last year’s Inc. 5000 list of the country’s fastest-growing private companies after more than quadrupling revenues over three years to $12.4 million. Its new owner is Gryphon Investors, which focuses on middle-market companies and has managed more than $5 billion since 1997. Another San Francisco firm, Mainsail Partners, had been Ncontracts’ main backer since 2015.
"The risks facing financial institutions are multiplying and becoming more complex. And no bank, regardless of size, can justify using spreadsheets today to manage the process when the stakes are so high," Jon Cheek, a Gryphon principal, said in a statement. "Ncontracts' software has made it easy for financial institutions of all sizes to manage the spectrum of complex risks and regulations facing them today."
Cheek is one of three Gryphon executives who have joined the Ncontracts board of directors. Company founder Michael Berman is staying on as CEO of the company, which has more than 1,300 customers across the country.
Herman and his team last year expanded their offerings by acquiring a Charlotte-based peer that specializes in helping banks comply with fair lending regulations. The company also has an office in the Philadelphia area.
“There are still opportunities for expansion across this fragmented market," Berman said. "With Gryphon's resources and leadership, we are confident that we can continue to increase our market share, and we are excited to embark upon a strong partnership."