Spectrum deal takes Fund VI to 80% invested

The firm’s C$60m investment in Verafin marks the largest growth equity deal in Canada this year. 

Spectrum Equity has invested C$60 million (€40 million; $55 million) for a minority stake in Canadian fraud detection and anti-money laundering software Verafin.  

Verafin helps financial firms fight adversaries in cyberspace through its Software as a Service (SaaS) platform. The deal is understood to be the largest growth equity investment in a Canadian company this year and takes Spectrum’s $680 million Fund VI to more than 80 percent invested.  

“Large and small financial institutions alike are converging on Verafin’s FRAML solutions as the optimal way to manage financial risk and to comply with regulation,” said Chris Mitchell, managing director at Spectrum Equity, in a statement. 

Spectrum Equity Investors had raised six funds since inception and launched its Spectrum Investors VII fund in April with a target of $800 million, according to Private Equity International's research and analytics division.  

The firm specializes in leveraged buyouts, recapitalisations and dividends and acquisition financings for growth.