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  • Regtech Droit raised $23 million in Series B funding in a round led by Pivot Investment Partners and UBS’ venture and innovation unit UBS Next.
  • The New York-based company will use the capital to support its expansion into wealth management, as well as to develop new products.
  • Droit’s signature offering Adept is a platform that helps keep businesses compliant by operationalizing laws, rules, and policies within existing systems.

In a round led by Pivot Investment Partners and UBS – via its venture and innovation unit UBS Next – U.S.-based regtech Droit has raised $23 million in Series B funding. The new capital takes the company’s total equity funding to $39 million, according to Crunchbase. Also participating in the financing was existing investor Goldman Sachs.

Droit will use the investment to support its expansion into wealth management and develop new products including Position Reporting, Transaction Reporting, and new cloud-based services. The company specializes in global regulatory compliance in the capital markets industry, and its flagship offering, Adept, is used by many of the largest financial institutions in the world for pre- and post-trade decision-making and auditability.

More specifically, Adept helps support compliance efforts by operationalizing laws, rules, and policies within existing systems. Droit continuously monitors regulatory and policy changes in order to update its platform as new rules, as well as new interpretations of old rules, are issued. The platform enables users to see exactly how rules and regulations are applied and uses a logic model with traceable pathways to the original source text to verify decisions. This provides for greater clarity, enhanced operational efficiency, and a process that is repeatable and defendable.

“This year marketed Droit’s 10-year anniversary and we greatly appreciate the support from our investors and their confidence in our future success,” Droit founder and CEO Brock Arnason said. “This funding will enable us to accelerate the innovation of our new product lines. We are also excited to join UBS Next’s portfolio of fintech companies and look forward to partnering with them on building out our wealth management capabilities.”

Founded in 2012 and headquartered in New York, Droit is a specialist in computational law and regulation. The company expects to leverage its Adept platform to bring its transparent decision-making infrastructure – currently applied to capital markets – to the world of wealth management. UBS Chief Digital and Information Officer Mike Dargan underscored this in a statement, saying that UBS “look(s) forward to extending our relationship with them across our wealth management business.”

Droit’s latest funding arrives after two years of “strong growth” for the company. Over this time, Droit commercialized four new products lines, and grew its team by nearly 70% including making key leadership hires in business development and technology. The company also has expanded geographically, opening offices in Singapore to help take advantage of opportunities in the region.

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