TL;DR
Behavox raised $175 million in preferred equity from HPS Investment Partners, part of BlackRock, to expand its AI compliance platform and pursue acquisitions. It is the regtech company’s first equity raise since SoftBank invested $100 million in 2020.
Behavox has raised $175 million in preferred equity from HPS Investment Partners, the private credit firm that BlackRock acquired for $12 billion last year. The funding will go toward expanding Behavox’s unified AI compliance platform and pursuing acquisitions.
It is the company’s first equity raise in six years. As part of the deal, Behavox fully repaid and retired a $70 million venture-debt facility with Hercules Capital that it had used in late 2024 to fund its acquisition of Mosaic Smart Data.
What Behavox does
Behavox sells AI-powered compliance tools to banks, asset managers, hedge funds, and commodity firms. Its platform bundles four products: Quantum for communications surveillance, Polaris for trade surveillance, Intelligent Archive for regulatory data retention, and Pathfinder for policy management.
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The pitch is that banks already use AI to detect misconduct and fraud, but most still run separate systems for each compliance function. Behavox argues that unifying those tools on a single data layer catches patterns that siloed systems miss.
Ten of the 24 Global Systematically Important Banks now use the platform, including BNY and Mizuho Securities. The company reported 86% customer growth in 2025, bringing its total client base above 100 major financial institutions across five continents.
Why now
Behavox was founded in 2014 by Erkin Adylov, a former Goldman Sachs equity researcher and Man Group portfolio manager. SoftBank Vision Fund 2 invested $100 million in 2020, but the company went six years without raising equity again, funding itself through revenue and the Hercules debt facility.
The HPS deal signals a shift in strategy. With the venture debt retired and $175 million in fresh capital, Behavox is positioning itself for another round of acquisitions, following the Mosaic Smart Data deal, joining a wave of compliance-focused companies raising large rounds as regulatory requirements grow more complex.
The investment also reflects institutional capital’s growing appetite for AI tools in financial services. BlackRock’s HPS manages roughly $150 billion in client assets, and its decision to back a compliance platform, rather than a trading or portfolio management tool, suggests that the regulated side of finance is where it sees durable demand.
Smaller AI compliance startups are also raising, but Behavox’s client list and six-year gap between equity rounds set it apart. Whether the company can consolidate the regtech market before incumbents build comparable AI capabilities of their own, or before well-funded newcomers catch up, will determine whether the $175 million was money well spent.
