PureFacts Financial Solutions Inc., a Toronto software company that helps wealth managers track and process their revenues, has been sold to a New York private equity company.
Three years ago, PureFacts would have been the kind of company Canadian investment bankers would have heavily courted to go public as stock-market valuations skyrocketed for promising, steadily growing software companies during the pandemic. PureFacts is a low-profile Canadian success story with 150 employees and 130 customers globally including Royal Bank of Canada, Fidelity Investments, Schroders, BNY Mellon, Canada Life Assurance and Dimensional Fund Advisors. The company derives 70 per cent of its revenues from outside Canada.
The business was self-financed until PureFacts raised $20-million from Bank of Nova Scotia and Round13 in November, 2020 to help fund an acquisition. It raised another $37-million in equity and debt a year later from CBGF, BNS and Round13, to accelerate product development and fund further acquisitions.
Mr. Madej said PureFacts has broadened out in recent years to offer what he calls “end-to-end revenue management” to his wealth-management clients, providing a reporting and analytics engine that mines client data to help the companies with growth strategies.