Felicitas Global Partners banks on new popularity of due diligence platforms

The pandemic forced more companies to rely on due diligence software and now the space presents a growth opportunity, according to managing partner Bonar Chhay.

With in-person meetings halted by the pandemic, more companies are turning to due diligence platforms and Felicitas Global Partners wants to double down on investments around the risk intelligence space.

Bonar Chhay, managing partner at Felicitas, said there is a lot of potential in risk intelligence but the firm wants to work with companies that can provide services beyond just analyzing numbers.

“There’s a lot of software solutions that are really good that help you track numbers like the cost basis of investments, but when you can couple that with the qualitative elements, it will be a powerful combination. And that’s the future,” Chhay said.

This is why Felicitas decided to invest in risk intelligence platform provider Intelligo with a $22 million growth investment, which was announced in November. This is not the first time Felicitas has invested in Intelligo. In November 2020, the firm closed a $15 million Series B financing in the company. The company also recorded a 200 percent increase in revenue growth in the past three years.

Chhay said the firm became aware of Intelligo after being a client for two years on its Clarity platform. “We’re always looking for ways to be better investors and fiduciaries so whenever we come across things that help us do our jobs better, we’re all for it,” he said.

Chhay added that Felicitas had taken a board seat with the company, as he believes tools around diligence make better investors throughout the financial services industry.

Felicitas and Intelligo see a lot of growth potential in risk intelligence, particularly as the covid-19 pandemic has forced many companies to rely on due diligence platforms when in-person meetings get canceled. Intelligo itself benefitted from the pandemic; the company said its revenue is on track to grow 300 percent in 2021, mainly due to a larger customer base.

But even then, Intelligo chief executive and co-founder Shlomo Mirvis says integrating with other platforms, such as customer relationship management or data providers, is fast becoming more important.

Intelligo estimates the market for due diligence in the pre-investment period is at $500 million and growing.