LONDON, UK: CINC Systems, a cloud-based software company that serves the community association management industry, has received a strategic growth investment from Hg, a leading investor in software and services businesses.

The deal, whose terms were not disclosed, will see Hg join CINC’s founder, Bill Blanton, its management team and current investors, Spectrum Equity, as shareholders in the business.

CINC provides accounting, homeowner management, bank integrations and payments software for homeowner association (“HOA”) and condominium associations. The company, founded in 2005, serves more than 4 million units across about 35,000 associations and nearly 800 management companies, with deep integrations and strategic partnerships with more than 30 partner banks.

The investment follows a year of strong growth for CINC, which achieved record new bookings and 50% revenue growth in 2023. The company also launched several innovative features for the industry, including artificial intelligence (“AI”) in its management company-branded homeowner apps, which allow homeowners to ask and receive answers to simple questions that often burden association managers.

Bill Blanton, CINC Systems Founder and Chairman, said: “I’m proud that our achievements have attracted the attention of two globally renowned SaaS-specialist investors. The addition of Hg’s expertise in expanding top-tier software businesses, complemented by Spectrum’s support, places us in an advantageous position to keep innovating our products to better serve our clients, add new clients and expand our reach.”

Ryan Davis, Chief Executive Officer of CINC Systems, said: “This is a really exciting day for us all. With Hg’s expertise, our foundation in this sector is now stronger than ever. The wealth of experience and knowledge that this collaboration brings, puts us in the perfect position to innovate and augment our product.”

Hg has a long track record of investing in the tax and accounting software segment, having deployed around $10 billion in the sector over the last 19 years. Hg will use this experience to support CINC’s growth, with continued investment in its go-to-market strategy and product development.

Tom Kiernan, former CEO of ClickPay, will join the Board as part of the transaction, bringing additional industry expertise and relationships, as well as experience in constructing easy-to-use payment platforms for homeowners.

HgCapital Trust plc (HGT), whose shares are listed on the London Stock Exchange, will invest approximately £13.6 million in CINC, with other institutional clients of Hg investing alongside HGT through the Hg Mercury 4 Fund. HGT gives private and institutional investors the opportunity to participate in all Hg’s investments.

The investment will reduce HGT’s outstanding commitments to invest in Hg transactions to approximately £1.0 billion (44% of the pro-forma 30 September 2023 NAV). HGT’s liquid resources available for future deployment are estimated to be £746 million (33% of the pro-forma 30 September 2023 NAV).

Tom Kiernan, former CEO and co-founder of ClickPay, one of the industry’s leading payment platforms, will join the board as part of the transaction. This appointment will add Kiernan’s industry knowledge, strong relationships and deep payments expertise to help further strengthen the leadership team and support the business as it continues to rapidly grow.

Farouk Hussein, Partner at Hg, said: “Our extensive work confirms CINC’s product leadership as a system of record in this sector. It has a highly differentiated, purpose-built integrated solution for banking and accounting in a growing segment that is only in the very early innings of software adoption. We look forward to backing Ryan and partnering with the existing shareholders and management team to continue driving the CINC success story.”

Mike Farrell, Managing Director at Spectrum, said: “We’ve had a great partnership with Bill, Ryan and the entire leadership team at CINC. They’ve established CINC’s enviable position in the market, and we are excited to continue to support them, and collaborate with Hg, as the company enters its next phase of growth.”

Raymond James is acting as exclusive financial advisor to CINC and Spectrum Equity, and Troutman Pepper and Latham & Watkins LLP are acting as their legal advisors. Harris Williams is serving as exclusive financial advisor to Hg and Kirkland & Ellis LLP is serving as its legal advisor.

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