FLEX Capital, an operational private equity fund focusing on mid-sized software companies in the DACH region, has acquired a majority stake in PROXORA, the pioneer in compliance management software. Together, FLEX Capital and PROXORA aim to transform the company from a hidden champion into a leading European provider of compliance management software for corporations and mid-sized businesses.
The PROXORA compliance platform assists companies in the effective and efficient implementation of compliance processes, helping to identify, mitigate, and avoid compliance risks.
Founded in 2001 in Munich as an IT consulting firm, PROXORA has evolved into a renowned and comprehensive compliance partner for numerous DAX, MDAX, and mid-sized companies domestically and internationally, including BMW, Siemens, thyssenkrupp, TRATON, and the Volkswagen Group. This transformation followed the successful resolution of a billion-dollar corruption case, earning recognition from the US Department of Justice.
Risk management and compliance as core business strategy
Given increasing legal requirements and rising cost pressures, effective compliance management is essential. Non-compliance can result in significant financial losses and severe reputational damage.
The PROXORA compliance platform offers proven compliance process standards that can be flexibly adapted to the specific needs of a company. The software covers all relevant areas, such as business partner screening, anti-money laundering, compliance risk analysis, and internal approval processes, including case evaluations like handling employee benefits. As a modular platform, it can be gradually expanded with additional compliance processes.
With the successful migration of clients to the SaaS platform, PROXORA has established an innovative, cloud-based compliance solution. The team, based in Munich with over 40 employees, responds quickly and flexibly to customer needs and benefits from long-term relationships with both corporations and mid-sized companies.
“PROXORA is an outstanding success story of the German mid-market. As one of the first companies, PROXORA established professional compliance management solutions in the market. The team is characterized by extensive corporate compliance expertise and long-standing IT knowledge. This competence and reliability make PROXORA a valued partner for its customers, reflected in an impressive customer retention rate,” says Christoph Jost, Managing Partner of FLEX Capital. He adds, “The compliance market is exciting. Stricter regulations and new laws make professional compliance solutions relevant for more and more companies.”
PROXORA’s software is continuously adapted to new compliance requirements and processes, including current regulations under the German and European Supply Chain Due Diligence Act and the EU Taxonomy and CSRD (Corporate Sustainability Reporting Directive) of the EU. These laws affect not only large companies but also the German mid-market.
FLEX Capital’s innovative fund structure as a growth lever
FLEX Capital supports the PROXORA team with operational expertise to elevate the company to the next growth level.
“After an intensive selection process, we consciously chose FLEX Capital. Our goal was to find a partner who would support us financially and strategically in realizing our visions. With FLEX as a sparring partner, we benefit from their expertise and open exchange. FLEX helps us accelerate development processes and successfully implement new customer requirements. I trust in their experience and look forward to a joint success story,” says Jan Tchinitchian, founder and CEO of PROXORA.
FLEX Capital distinguishes itself from most private equity funds through a commercial fund structure that allows the investor to work operationally with portfolio companies, whereas typically only advisory roles are possible. With an internal team of nearly 30 experts, FLEX Capital can help establish professional corporate structures in key areas such as organizational development, recruiting, business intelligence, marketing, and sales.
The first joint step at PROXORA will focus on expanding teams in key areas and strategically developing the platform.
Peter Waleczek, Managing Partner at FLEX Capital, explains, “PROXORA is a remarkable entrepreneurial achievement. Bootstrapped and profitable, they have focused on the perfect product-market fit. I look forward to building on this foundation together and growing another hidden champion of the German software industry into a leading European company.”
About PROXORA
PROXORA offers leading compliance management software with intelligent solutions for effective compliance processes. Since 2001, PROXORA has been a renowned partner for numerous DAX, MDAX, and mid-sized companies worldwide. The innovative platform crucially identifies, mitigates, and prevents compliance risks and meets individual customer requirements, such as integrating internal compliance policies. The software includes modules for third-party management, screening and anti-money laundering, compliance risk analysis, and internal compliance approval procedures. PROXORA is distinguished by long-standing experience, extensive expertise, and a customer-oriented approach, supporting companies in complying with legal compliance requirements. The PROXORA team has proven this multiple times by acquiring new clients among major DAX corporations and maintaining long-term collaborations. More at www.proxora.com.
