TPG Announces $228 Million Strategic Growth Investment in Sayari, a Leading Counterparty & Supply Chain Risk Platform

Rhea-AI Summary

Sayari, a risk intelligence provider, and TPG, a global asset management firm, have signed an agreement for TPG Growth to invest up to $228 million in Sayari. Sayari's platform is trusted by global regulators, law enforcement, and over 100 top companies. The partnership with TPG will accelerate Sayari's global expansion and support the launch of a new supply chain platform leveraging responsible AI. The investment comes at a time of considerable growth for Sayari, with a 950% increase in international government contracts over the past year.

Insights

Financial Analyst

The strategic majority investment of up to $228 million by TPG Growth into Sayari represents a significant infusion of capital that can be expected to have material implications for both entities. From a financial perspective, this investment indicates a strong vote of confidence in Sayari's business model and its growth trajectory, particularly since it has been recognized by Deloitte and Inc. Magazine as one of the fastest-growing technology companies in North America.

For stakeholders in TPG, the investment diversifies their portfolio into the burgeoning field of risk intelligence technology, which is gaining importance as global supply chains become more complex and regulated. The substantial growth of 950% in Sayari's expansion into international governments suggests a robust demand for its services, which could translate into strong revenue streams for TPG in the long-term. However, the actual return on investment will depend on Sayari's continued performance and ability to capitalize on the opportunities presented by increased regulatory scrutiny over global supply chains.

Supply Chain Risk Management Expert

From a supply chain risk management perspective, the investment in Sayari by TPG Growth is particularly noteworthy. Sayari's platform, which integrates global corporate and supply chain data, is at the forefront of a critical industry need—surfacing risk insights for investigations, analytics and supply chain risk management. The development of a new supply chain illumination platform leveraging responsible AI indicates an innovative approach to extracting deeper insights from supply chain data.

This technology is expected to enhance the capabilities of multinational corporations and financial institutions in identifying and mitigating risks within their supply chains. The promise of driving down costs while delivering superior insights to decision-makers could significantly improve the efficiency and security of global trade practices. However, the success of this new platform will hinge on its effectiveness in real-world applications and the ability to seamlessly integrate with existing systems.

Legal Expert

From a legal standpoint, the strategic investment in Sayari by TPG Growth underscores the increasing legal and regulatory complexities that companies face in global commerce. With Sayari's expansion into contracts with governments in the U.S., UK, Canada, Australia and the EU, there is a clear indication of the market need for solutions that can navigate and comply with diverse regulatory environments.

The reference to support for trade enforcement, forced labor risk and Military End Use restrictions highlights the platform's alignment with current legal trends and the importance of due diligence in international trade. The effective use of Sayari's platform could help companies mitigate legal risks by ensuring compliance with these evolving regulations. However, the platform's ability to adapt to future changes in the legal landscape will be crucial for its sustained relevance and effectiveness.

SAN FRANCISCO & WASHINGTON--(BUSINESS WIRE)-- Sayari, a counterparty and supply chain risk intelligence provider trusted by government agencies, multinational corporations, and financial institutions, and TPG (NASDAQ: TPG), a global alternative asset management firm, today announced that they have signed a definitive agreement for TPG Growth, the firm’s middle market and growth equity platform, to make an up to $228 million strategic majority investment in Sayari. Sayari’s founders, employees, and existing investors will retain a significant stake in the company.

Founded in 2015, the Sayari platform integrates global corporate and supply chain data to surface risk insights for investigations, analytics, and supply chain risk management. Today, Sayari’s platform is trusted by users from across global regulators, law enforcement, and national security agencies, as well as over 100 of the world's largest public and private companies. Sayari has seen explosive growth since the release of its platform in 2020 with consecutive rankings by Deloitte and Inc. Magazine as one of the fastest growing technology companies in North America. The partnership with TPG will accelerate Sayari’s global expansion in 2024 and support the launch of a new supply chain illumination platform leveraging responsible AI to extract deeper insights from Sayari’s industry-leading and authoritative supply chain data.

“As the global business landscape continues to evolve, companies are facing an increasingly complex set of risks and are being held accountable for the counterparties with which they partner,” said Mike Zappert, Partner at TPG. “Sayari sits at the intersection of these trends. Through its unique data assets built over many years, Sayari’s platform drives greater insights into emerging threats and gives organizations more power to protect the people, businesses, and nations they serve. TPG has invested behind leading information services and government technology businesses for more than two decades, and we look forward to partnering with the Sayari team on their journey.”

“Whether it’s a regulatory body or Fortune 500 company, our platform arms leaders with the information they need to make decisions that promote safer global commerce,” said Farley Mesko, Co-Founder and CEO of Sayari. “This strategic partnership marks a crucial milestone in Sayari’s journey to revolutionize the landscape of risk intelligence technology as we launch our second product, a new fully automated supply chain screening platform leveraging our industry leading knowledge graph alongside cutting edge technologies. We see a massive opportunity in the supply chain risk space to drive down costs and deliver superior insights to decision makers and we’re pleased to have a partner who shares our vision. TPG brings tremendous resources, operational expertise, and a customer-first philosophy that is truly unique.”

This investment comes at a time of considerable growth for Sayari. In 2023, the company was awarded contracts in the U.S., UK, Canada, Australia, and the EU, supporting trade enforcement, forced labor risk, Military End Use restrictions, and complex investigations. As regulatory scrutiny over global supply chains has spread, the company’s expansion into international governments has accelerated 950%¹ over the past year. With momentum across government and enterprise, TPG and Sayari aim to develop groundbreaking technology that tackles the world’s most pressing challenges.

The transaction is expected to close in the first quarter of 2024, following customary regulatory approvals.

Goldman Sachs & Co. LLC served as financial advisor to TPG, and Kirkland & Ellis served as legal counsel. William Blair served as financial advisor to Sayari, and Manatt, Phelps & Phillips, LLP served as legal counsel.

About TPG

TPG (Nasdaq: TPG) is a leading global alternative asset management firm, founded in San Francisco in 1992, with $212 billion² of assets under management and investment and operational teams around the world. TPG invests across a broadly diversified set of strategies, including private equity, impact, credit, real estate, and market solutions, and our unique strategy is driven by collaboration, innovation, and inclusion. Our teams combine deep product and sector experience with broad capabilities and expertise to develop differentiated insights and add value for our fund investors, portfolio companies, management teams, and communities. For more information, visit www.tpg.com.

About Sayari Labs

Sayari is the counterparty and supply chain risk intelligence provider trusted by government agencies, multinational corporations, and financial institutions. Its intuitive network analysis platform surfaces hidden risk through integrated corporate ownership, supply chain, trade transaction and risk intelligence data from over 250 jurisdictions. Sayari is headquartered in Washington, D.C., and its solutions are used by thousands of frontline analysts in over 35 countries. To learn how Sayari powers safer global commerce, please visit sayari.com.

[1] Annual Recurring Revenue (ARR) growth
[2] As of September 30, 2023, including AUM attributable to TPG Angelo Gordon on a pro forma basis.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240115110871/en/

Media Contact

Julia Sottosanti

media@tpg.com

(415) 743-1550

Source: TPG

FAQ

What is the value of the investment TPG Growth is making in Sayari?

TPG Growth is making an up to $228 million strategic majority investment in Sayari.

Who will retain a significant stake in Sayari after the investment?

Sayari's founders, employees, and existing investors will retain a significant stake in the company.

What is the main focus of Sayari's platform?

Sayari's platform integrates global corporate and supply chain data to surface risk insights for investigations, analytics, and supply chain risk management.

What is the expected outcome of the partnership with TPG for Sayari?

The partnership with TPG will accelerate Sayari's global expansion and support the launch of a new supply chain platform leveraging responsible AI.

How much has Sayari's expansion into international governments accelerated over the past year?

Sayari's expansion into international governments has accelerated 950% over the past year.