Investing in fintech companies that solve regulatory and compliance challenges.

BEACON EQUITY PARTNERS

Beacon Equity Partners is a private equity firm investing in innovative software and technology companies.
For over a decade we have helped European companies expand to North America

Our portfolio companies benefit from our investment, strategic advice and operational expertise.
We aim to generate attractive investment returns by following a patient and disciplined approach,
employing high-quality people, and pursuing the highest standards of excellence.

Boston | Munich

ABOUT US

Finding the right investment partner is a big deal. You need to know that whomever you work with is going to understand your vision and shepherd the company with integrity. As a founder or executive, you should not settle for anything less. So, we wanted to share a little bit about who we are and the beliefs that guide us.

Beacon is keen to invest in teams that have built solid, innovative products to solve real-world regulatory, compliance and data challenges. We have been entrepreneurs, start-up founders, financial service executives and investors, so we know what it takes to achieve success. As a team, we strive to operate at the highest standards of excellence, and we invest in companies that do the same. Our values stand at the center of everything we do and drive our decision-making, both personally and professionally.

We are a hands-on group, committed to partnering closely with each portfolio company to support critical functions — from operations to sales to strategy — to achieve broad success for both the company and its employees. As such, we invest in a small number of companies at a time (typically 3-5), ensuring ample bandwidth to help tackle challenges (and celebrate successes). We are patient, long-term investors, and because we invest only our own money, we do not face external pressures for a premature exit in order to score a “quick win.”

Beacon is a global company and we have a global focus. We have achieved significant success in North America, Europe, and Asia-Pac, and are particularly proud of our ability to help European companies expand into North America.

INVESTMENT APPROACH

STAGE

Beacon’s investments range from early to later stage growth opportunities. We develop new investment ideas, underwrite investment opportunities and make investments on our own behalf. We typically make an initial investment of between US$3M and US$20M. We have an international network, supplemented with strategic investments in other PE/venture funds, that we can rely on to identify and evaluate direct investment opportunities.

SECTOR

We focus primarily on fintech opportunities, especially companies that address regulatory and compliance processes. Through decades of experience, we have developed deep sector expertise and key relationships, which we believe make us thoughtful investors and solid partners for management.

GEOGRAPHY

We generally invest in companies headquartered in Europe, where we leverage the strength of our network of relationships to find talent, connect with potential customers, and locate possible acquisition targets. The businesses are often global in scope, with operations and resources around the world. We have a unique talent set to help international companies grow operations, round out management teams, and drive sales in North America and globally.

GROWTH

We believe that successful companies can grow organically and through acquisitions. Therefore, we commit our capital and support to improve a company’s products, open new markets, and expand or create channels of distribution. In many cases, acquisitions can enhance product offerings and accelerate growth, so we are always working to identify merger and acquisition opportunities for our portfolio companies.

TEAM

We have walked in the shoes of our portfolio companies, and we know what it takes to achieve success.
The majority of the Beacon team has been together since 2003, and each of our partners has decades of relevant experience.

  • We have extensive experience investing in venture, private equity and public markets.
  • We have founded companies, built teams, refined product offerings and expanded to the United States.
  • We have invested in early stage companies and helped generate revenue growth both organically and through acquisition.
  • We are located in Boston and Munich and have a deep network of relationships throughout Europe and North America.
  • We have run legal and compliance functions at large, diversified financial services companies.

Ed Mullen

Partner
Ed is a successful entrepreneur, turned investor. Ed founded Beacon in 2001 after a long career starting and growing businesses. He has been a founder, CEO, and Chairman of both public and private companies. Ed was an adjunct professor at Boston College’s School of Management. He is an aviator, a sailboat racer and a philanthropist.

Lindsay Chryssis

Head of Operations
Lindsay runs Beacon’s day-to-day operations, including banking, accounting, fx and technology support. Lindsay also has extensive experience in small company due diligence preparation. Lindsay holds a Bachelor of Communications degree from Northeastern University.

Jim Sullivan

Head of Worldwide Business Development
Jim focuses on uncovering new investment opportunities and strategic partnership opportunities for Beacon. Earlier in his career, Jim was a Partner with JLS Capital Management, an investment adviser, and a Former Managing Director at Lincoln Vale LLC, a US/European multi-product alternative asset firm. Jim received his BA from Miami University.

Christian Hostmann

Head of European Business Development
Christian runs Beacon’s Munich office, where he develops investment opportunities for Beacon. Prior to Beacon, Christian founded Venture Catalyst GmbH, a German incubator for IT businesses, and has served in senior roles at venture capital affiliates of UniCredit Bank AG and Deutsche Bank AG. Christian earned his Master/Licenciate in Business Administration at University of St. Gallen (HSG), Switzerland and his qualifications in banking with Commerzbank AG in Frankfurt/Main.

Exari

Exari was a 6-person contract lifecycle management software company in Melbourne, Australia when Beacon invested. Beacon expanded Exari to the US and Europe, and Exari became a world leader in its field. Beacon sold Exari to Coupa Software for US$212m, which represented a 21x return on capital.

“Almost all investors claim to provide support; few provide the daily hands- on support that Beacon does. They provided essential support to the company, from strategy to people to execution as we built the company together. A Beacon Partner, Joe Bradley, was instrumental in closing many of our largest sales, including one $7.2m deal.”

Bill Hewitt, Former CEO of Exari Solutions

Anaqua

Beacon founded Anaqua, a UK-based IP software and services startup. Beacon expanded Anaqua to the EU, US and Asia and Anaqua became a world leader in its field. Beacon sold Anaqua to Insight Venture Partners for US$217m, which represented a 24x return on capital.
“I founded Anaqua with the goal of building a world leader in the IP software and services field. Thanks to the dedication and hard work of the Beacon and Anaqua teams, we expanded Anaqua from the UK to the EU, the US and Asia. Beacon built the sales and finance departments and led a key acquisition.”

Ed Mullen, Founder and Former Executive Chairman of Anaqua (Founder of Beacon Equity Partners)

SteelEye

Beacon has made an initial investment of US$6M in SteelEye, and led the round which included Fidelity International Strategic Ventures and Illuminate Financial Group. SteelEye is an award-winning UK company that provides data-driven compliance solutions for a range of regulatory compliance obligations.

“The US is 55% of the fintech market. We wanted help expanding to the US, so we were very pleased when Beacon led our last round. Beacon understands the challenges we face in growing our business, and they provide invaluable support.”

Matt Smith, SteelEye CEO

Encompass

Beacon invested US$5.7M in Encompass, a UK company that transforms Financial Crime, Know Your Customer (KYC) and Know Your Vendor (KYV) compliance. Using intelligent process automation and artificial intelligence, Encompass gathers and analyses a wealth of information to dynamically build a visual picture of a company or individual in just minutes. Encompass serves some of the largest banks in the world.

“Beacon Equity Partners is the perfect match for Encompass, with this investment enabling us to continue our rapid growth journey whilst investing across our business to meet demand. The expertise Joe and Beacon bring in growing global companies is of great benefit, particularly as we work towards formally entering the North American market in 2021 – a significant milestone for Encompass.”

Wayne Johnson, Encompass CEO and co-founder

CAPABILITIES

Every private equity firm claims to partner with its portfolio companies. We actually do.
At Beacon, we only invest in companies where we think we can make a difference—and we make a small number of concentrated investments to ensure that we have the time and attention to support each company as and when needed.

Every company is different. And that’s how we approach them.
We don’t have a one-size-fits-all playbook. Our support is tailored to the specifics of each company’s situation, drawn from one or more of our capabilities.

FINANCING

We make an initial investment in a company with an eye toward future financing needs. We have relationships with like-minded early-stage investors and connections with strategic investors (such as global banks that might be a client and/or an investor) that help inform our advice on how to best meet the financing needs of a company. We take on the role of lead investor where appropriate, and we work to minimize founder dilution through financial engineering.

CROSS BORDER EXPANSION

Our deep network of contacts across Europe and North America is a critical resource for expansion. We tap into current customers of fintech providers, such as global banks and diversified financial services firms, as well as former and current employees of our exited portfolio companies, to maintain an up-to-date view of the market for innovative product solutions.

OPERATIONS

We have been the CEO, CFO, Chairman, Head of Sales and Marketing. We have expertise in governance, finance, operations and sales, and we stand ready to take on projects and work with management to address skills gaps that every growing business faces.

M&A

We advise on strategic acquisitions to gain access to new markets, to enhance product functionality and to build core functions. When helpful for our portfolio companies, we fully evaluate and help execute M&A opportunities on behalf of management in order to minimize distraction for senior management.

OUR VALUES

Every company is the sum of its people. These are the beliefs that drive our team.

  • Every person has a fire inside that drives him or her to achieve, to grow, and to succeed.
  • In some people, this fire burns so brightly that they can change the world by creating new solutions to significant problems. By creating jobs and opportunity for people around them. By working, and worrying, and working some more, when the path forward is far from certain.
  • We invest in these entrepreneurs and salute their efforts, because we believe that new businesses are the backbone of the western economy.
    Anyone—from any walk of life and without regard to race, color, sexual orientation or creed—can succeed. And we invest based on that belief.
  • We invest not just to make a profit, but also to make our world a better place today and for future generations.