Warburg Pincus takes stake in Australian CreditorWatch

Warburg Pincus has agreed to invest in CreditorWatch, taking a stake in the Australian commercial credit reporting and risk analytics company.

Financial terms were not disclosed. The transaction is subject to conditions and is expected to be completed in the third quarter of the calendar year.

Founded in 2010, CreditorWatch provides commercial credit reporting, risk analytics and monitoring tools to Australian businesses. It says it serves more than 10,000 customers and employs more than 230 people.

The investment adds to WarbPincus' activity in Australia, where it has backed investors and companies through its global investing platforms and real estate business. Across Asia, it says it has invested about USD $34 billion, or AUD $47 billion, in more than 270 companies over more than three decades.

Andrew Park, Managing Director and Head of Asia Technology at Warburg Pincus, described the firm's view of the business.

"CreditorWatch is a high-quality, market-leading platform built on proprietary data that delivers trusted, differentiated insights to customers across Australia," Park said.

"As growth investors, we are deeply committed to building companies for sustainable, long-term success. We're excited to partner with the management team and continuing board members, bringing our global experience in scaling businesses and deep sector expertise to support CreditorWatch's next phase of growth and its mission to broaden access to data-driven credit insights for businesses of all sizes," he added.

Expansion plans

CreditorWatch said the investment will support its next phase of expansion, including further investment in staff and technology. The company focuses on business-to-business credit reporting and offers products spanning onboarding, credit decisioning, monitoring, KYC and AML reporting, and collections.

"Warburg Pincus' deep global experience across technology, fintech and software makes it the ideal partner for CreditorWatch's next phase of growth. We are confident in the strength of the management team and impressed with Warburg Pincus' track record of scaling businesses and supporting their long-term growth ambitions," Stephen Wood, Chairman of CreditorWatch, said.

"CreditorWatch has reached an important milestone in its development, and we are looking forward to accelerating our growth, continuing investing in our people, technology and customers, and delivering greater value to Australian businesses. I am proud of what our team has built and look forward to continuing to revolutionise how businesses manage credit risk and make informed decisions," said Patrick Coghlan, Chief Executive Officer of CreditorWatch.

CreditorWatch describes itself as Australia's only dedicated business-to-business credit reporting agency. Its customer base ranges from sole traders and family-run firms to listed companies.

Australia focus

The deal also signals a broader push by Warburg Pincus in the Australian market. The firm manages more than USD $105 billion in assets and has more than 225 companies in its active portfolio across sectors and regions.

"I am delighted that CreditorWatch shareholders will have the opportunity to partner with a proven investor with expertise in growing data and information platform businesses globally and the potential to deliver new capabilities and innovation for customers and the team," said Christian Beck, a majority shareholder in CreditorWatch.

Warburg Pincus executives linked the transaction to the firm's longer-term strategy in Asia and Australia.

"This investment is a natural evolution of our long-term commitment to Asia," said Vishal Mahadevia, Managing Director, Head of Asia Private Equity, and Global Co-Head of Financial Services at Warburg Pinc. "Over the past three decades, we have built a leading investment franchise in the region, and we see Australia as an increasingly important market for growth-oriented capital like ours. CreditorWatch exemplifies the type of differentiated, technology-enabled market leader we look to partner with globally."

"We are excited to deepen our presence in Australia through our partnership with CreditorWatch," said Alex Roso, Managing Director at Warburg Pincus. "Australia represents a highly attractive market with strong fundamentals, world-class companies and significant investment opportunities. We believe Warburg Pincus is well-positioned to support companies as they scale domestically and internationally.

We look forward to supporting CreditorWatch's next phase of growth while continuing to pursue further investment opportunities in Australia."