Fraud dispute software firm Quavo inks $300m from Spectrum Equity

• Quavo’s co-founders and Pegasystems, which has been a strategic investor and technology partner to Quavo since the company’s founding, will all remain significant shareholders following the transaction
• Founders Joseph McLean, David Chmielewski, Daniel Penne, and Richard Jefferson launched Quavo in 2016

Spectrum Equity has invested $300 million in Quavo Inc, a Wilmington, Delaware-based provider of cloud-based software that automates and manages fraud and dispute processes for financial institutions.

Existing investor Fintop Capital will sell its ownership stake in the transaction. Quavo’s co-founders and Pegasystems, which has been a strategic investor and technology partner to Quavo since the company’s founding, will all remain significant shareholders following the transaction.

“Fraud and dispute management is a massive business-as-usual problem for financial institutions and fintechs alike, and we believe that Quavo is uniquely positioned to drive automation benefits and better outcomes in this space,” said Adam Margolin, Managing Director at Spectrum Equity. “Quavo’s highly configurable platform, scaled transaction data powering its decisioning engine, and mission-driven approach to solving costly and time-consuming problems for its clients set the company apart. We couldn’t be more excited by the opportunity to back Joe and the rest of the Quavo team going forward.”

KeyBanc Capital Markets served as financial advisor and Goodwin Proctor served as legal advisor to Quavo. Latham & Watkins served as legal advisor to Spectrum Equity.

Founders Joseph McLean, David Chmielewski, Daniel Penne, and Richard Jefferson launched Quavo in 2016.