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Spectrum Continues Partnership with CINC; Hg Joins as Stategic Investor

Duluth, Ga, USA and New York, USA. CINC Systems (“CINC”), a leading cloud-based software company serving the community association management sector, today announced it has secured a strategic growth investment from Hg, a leading investor in European and North American software and services businesses.

On completion of the transaction, Hg will become a strategic shareholder in the business, investing alongside CINC’s founder, Bill Blanton, and its management team, as well as current investors Spectrum Equity.

CINC is a leading provider of accounting, homeowner management, bank integrations and payments software for the association management industry, comprised of homeowner association (“HOA”) and condominium associations. Founded in 2005, CINC has built a leading SaaS platform for this sector, serving 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.

CINC recently announced the launch of several ground-breaking innovations for the industry at its annual user conference CINC Up, including the introduction of artificial intelligence (“AI”) in its management company-branded homeowner apps. The technology allows homeowners to use their apps to ask simple questions that bog down association managers – and receive informed answers in return.

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 Office 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.”

CINC has scaled rapidly in recent years, investing to ensure fast-paced product innovation, a robust customer success team and enhanced sales and marketing efforts. This has resulted in a significant year of growth in 2023, with record new bookings and approximately 50% revenue growth. Today, its all-in-one software, bank integration and payments technology solution adds significant value to all participants in the HOA ecosystem, with more than $7 billion of annual payment volume being managed through its platform.

Hg brings significant sector expertise to CINC. Over the last 19 years, the firm has invested more than $9 billion in the wider tax and accounting software segment across Europe and North America. Hg will use this experience to support the business, with continued investment in CINC’s go-to-market strategy and further innovation in new product launches, building on the momentum of the AI product launches, TresRE and VendorPay earlier this year.

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.

About CINC Systems

CINC Systems is one of the largest providers of software in the association management industry and an innovator behind accounting and banking integration. Founded in 2005 by a banker as the industry's first SaaS offering, CINC systems now employs over 200 people with customers throughout the country. In 2019, Spectrum Equity joined CINC and accelerated the company's growth. The accelerated growth is due to the continued innovation it provides through CINC, its core software platform, and TresRE, the banking and payments solution that underpins the success of real estate management software providers.

CINC provides accounting and management software to about 35,000 associations around the United States, touching more than 4 million homes. Through CINC, association management companies are better able to serve their boards and homeowners with the technology required in today's world. CINC offers deep accounting functionality that improves financial reporting performance, property management solutions that keep managers efficient and, in the field, websites and apps that keep homeowners engaged.

About Hg

Hg supports the building of sector-leading enterprises that supply businesses with critical software applications or workflow services, delivering a more automated workplace for their customers.

This industry is characterised by digitization trends that are in early stages of adoption and are set to transform the workplace for professionals over decades to come. Hg’s support combines deep end-market knowledge with world class operational resources, together providing compelling support to entrepreneurial leaders looking to scale their business – businesses that are well invested, enduring and serve their customers well.

With a vast European network and strong presence across North America, Hg’s 400 employees and $65 billion in funds under management support a portfolio of more than 50 businesses, worth over $135 billion aggregate enterprise value, with over 100,000 employees, consistently growing revenues at more than 20% annually. Additional information is available at www.hgcapital.com.

The specific companies identified above do not represent all of Spectrum’s investments, and no assumptions should be made that any investments identified were or will be profitable. View the complete list of our portfolio companies. Spectrum is not responsible for the contents of any third party website linked above, and has not confirmed the accuracy of any information provided therein.