Five V Capital buys majority of AML startup First AML, handing Blackbird a payday
What's the deal? Five V CapitalDealroom has a profile for this one. Try Dealroom → is set to acquire a majority stake in Auckland-headquartered First AML, delivering a payday to the compliance startup's early backers, including Blackbird. The mid-market private equity firm, led on the deal by former MacquarieDealroom has a profile for this one. Try Dealroom → dealmaker Tim Cooper, agreed terms this week.
What does First AML do? Founded in 2017, it helps private equity, venture capital and property firms vet investors to meet know-your-client and anti-money laundering rules. Its customer due diligence platform serves financial service providers, lawyers, accountants and real estate agents.
The numbers: First AML is making about US$20.7M in revenue and is growing strongly, particularly in the UK. Blackbird led its US$19.4M Series B in 2021 and had owned roughly 12% of the company; other backers included US firm Bedrock Capital and New Zealand's Icehouse VenturesDealroom has a profile for this one. Try Dealroom →.
What changes? Founders Bion Behdin, Milan Cooper and Chris Caigou are expected to roll over their shareholdings and stay invested alongside Five V. The investment follows First AML's move to hire Barrenjoey Capital Partners to arrange a roughly $80 million secondary trade for early investors.
Why now? Australia's AML market faces a major regulatory expansion from July 1, 2026, when Tranche 2 rules extend obligations to law firms, accountants and real estate businesses. The change lifts the regulated population from about 19,000 to more than 90,000 — a demand surge already visible in First AML's recent legal-sector partnerships.
The track record: Five V has previously bet on back-office software for financial services. It sold share registry provider Automic Group to Advent InternationalDealroom has a profile for this one. Try Dealroom → for $725 million last year, four years after investing $80 million, and backed tax software firm Business Automation Works late last year.
Blackbird declined to comment, and First AML did not respond.
The signal: Looming regulation is turning fragmented regtech into prime acquisition territory. Strategic buyers are moving on established players with broad customer reach, betting that tighter compliance rules will drive demand for unified platforms.
Read more: afr.com
Image credit: Generated with Gemini
