Abu Dhabi’s Mubadala Capital is in talks to invest in UK corporate debt research start-up 9fin, in a deal that would value the privately held company at around $500mn, according to people familiar with the matter. The investment by the Middle Eastern fund would mark the latest in a flurry of high-profile transactions for businesses that provide information on niche areas of financial markets. No final agreement has been reached and may be weeks away, said the people.
Annual subscriptions to such services can run into the tens or even hundreds of thousands of dollars and private capital investors have been attracted to the recurring revenues paid by hedge funds, law firms and investment bankers who rely on the news, data and analysis. The company has roughly $25mn in annual recurring revenue though it remains unprofitable as it invests in new staff and technology.