A software company that helps financial institutions monitor employees’ electronic communications will this week unveil a $25m (£18m) investment from one of London’s most prominent asset managers.
Sky News understands that VoxSmart, which was founded in 2010, will announce on Monday that Toscafund has become its largest shareholder with a capital injection aimed at accelerating its growth.
VoxSmart creates software which enables clients to capture their workers’ activities on their mobile devices, monitor employee communications and automate trade reconstructions.
The company has a roster of 100 clients, including Bank of America, HSBC and TP ICAP, the interdealer broker.
Its products have become increasingly central to the demands of major financial institutions in the decade since the global financial crisis, with a string of global trading and compliance scandals triggering tens of billions of pounds-worth of fines from regulators.
VoxSmart’s services have seen a further surge in demand during the last 12 months as employees have been forced to work remotely as a result of the pandemic.
While a substantial return to office-based working remains likely in the coming months, many banks and other City institutions are preparing to adopt a permanent hybrid model for their staff.
Other providers of employee communications monitoring software have also emerged in recent years as compliance departments have sought ways to curb regulatory risks more effectively.
Last year, NatWest Group, the taxpayer-backed lender, invested £5.5m in VoxSmart as part of a previous funding round.
Its other backers include Deepbridge, an early-stage investor.
The recruitment of Toscafund as a shareholder further augments the London-based asset manager’s burgeoning fintech portfolio.
In recent years, the firm – founded by Martin Hughes in 2000 – has backed the digital challenger banks Oaknorth and Atom Bank, the insurer esure and Socium, a ‘buy-and-build’ business in the independent financial adviser sector.
Toscafund is also the new controlling shareholder in TalkTalk, the telecoms and broadband provider.
It was unclear this weekend at what valuation Toscafund’s $25m stake in VoxSmart had been acquired.
Toscafund and VoxSmart declined to comment on Sunday.