Motive Partners acquires controlling interest in RegTech firm LPA

Source: Motive Partners

Motive Partners, a global private equity firm focused on growth investing, today announced that it has acquired a controlling interest in LPA.

Motive Partners will support LPA and its founders in accelerating the company's growth, including product development, international expansion and strategic hiring.

Headquartered in Frankfurt, Germany, and founded in 1999, LPA is a financial technology solutions provider with a focus on capital markets and wealth management participants. LPA offers a broad suite of software to optimize processes and enable regulatory compliance, as well as providing strategic advice and implementation services. The announced transaction follows strong financial results at LPA, with the company having experienced significant revenue and profitability growth in recent years.

LPA’s core products are a suite of technology solutions enabling automated advice (LPA Digital Client Interaction), distribution (LPA Captano) and documentation (LPA Doc) for financial instruments, particularly structured products and OTC derivatives. LPA offers a market leading solution that allows banks to efficiently comply with regulation under MiFID II, PRIIPs and FIDLEG requirements relating to the Key Investor Information Document (KIID) which is a document that contains the essential information relating to a financial product, including financial terms, risks and past performance data for retail investors.

LPA has grown in recent years to nearly 200 specialists in 4 cities, with significant further talent expansion planned as LPA and Motive Partners capitalize on the international opportunity. Initial geographies targeted for expansion include Asia-Pacific, the United Kingdom and the United States, where Motive Partners' deep network and experience can catalyze growth. Other significant opportunities for value creation include product and service expansion into adjacent sub-sectors of the financial services industry.
Stefan Lucht, Co-founder of LPA, commented: "In Motive Partners we have found a firm that understands where we are coming from and our opportunity to accelerate the growth of the business. After months of searching we have found a strategic partner that will help us execute our shared vision."

Roland Probst, Co-founder of LPA, added: “Motive Partners’ global presence, extensive network and the capabilities of Motive Labs will help us become a global leader in regulatory technology.”

Motive Labs, the operational and technology value creation team of Motive Partners, will work in conjunction with LPA and its executives to help strengthen its operations, to implement and to execute its value creation plan.

Rob Heyvaert, Managing Partner of Motive Partners, commented: “Our team at Motive Partners has deep expertise in regulatory technology. Given our thesis on the regulatory technology space, we have spent significant time searching for an investment opportunity that combines talent and technology capability with significant growth prospects. LPA squarely matches our objectives and we look forward to leveraging our capabilities to continue growing the firm with Stefan, Roland and the senior management team.”

LPA's founders, Stefan Lucht and Roland Probst, and the management team will continue with the company to achieve our shared goals and to ensure the high service quality to all existing clients. The founders will remain shareholders and Managing Directors of LPA. Peter Schurau, an Industry Partner at Motive Partners, will join LPA’s management team to assist with the growth initiatives.

Peter Schurau, Industry Partner at Motive Partners and former Chief Executive Officer of Capco Europe, commented: "The Motive team and I are very enthusiastic about the unique potential this partnership represents—it is not every day that you find such a well-matched culture and complementary capabilities between an existing and highly talented management team and the investment firm. The opportunity to develop and deepen the software-focused value proposition for existing clients and to extend our reach into adjacent sectors is extremely exciting. It is our collective objective to build and evolve LPA in to a company of global scale that is recognized as a leading RegTech brand. I look forward to working very closely with Roland and Stefan to make it a reality."

Ernst & Young LLP, Proskauer Rose LLP and Skye Partners served as Motive Partners' advisors in connection with the transaction. Ludwig & Co and Watson Farley & Williams served as LPA's legal advisor in connection with the transaction.
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