Digital architect for private markets Pactio has successfully raised $14 million in a Series A round led by EQT Ventures.
The company is creating the digital architecture for one of the largest asset classes in the world.
The industry has swelled well beyond the original leveraged buyout to cover a myriad of investment strategies, including private credit, infrastructure, real estate, growth, and secondaries. In parallel, the investor pool has expanded via new structures promoting greater co-investment and retail access.
Navigating this complexity presents a new challenge for firms seeking to maintain a competitive edge, especially when they don’t have the right toolkit.
Closing a transaction currently involves a precarious distribution of highly manual, error-prone workflows across a number of legacy applications and teams of investors, tax advisers, lawyers and fund administrators.
Transaction teams struggle with generic tools that strain to keep up with so many moving parts, and the risk of errors is compounded by the threat of increasingly sophisticated cyberattacks.
It is on these shaky foundations that the remainder of an investment’s lifecycle rests, so middle- and back-office teams are left playing catch-up as they grapple with vast quantities of critical data.
Pactio provides an intuitive solution to streamline private capital flows. It sits directly within deal creation and closing workflows. By digitising transactions from the very start, Pactio addresses the root causes of complexity, de-risks workflows, and implements robust digital foundations for the entire investment lifecycle.
Eric Heimark, Co-Founder and Chief Executive Officer at Pactio, commented:
“Private markets are evolving into one of the largest and most complex asset classes in the world, yet this progress is being impeded by reliance on manual workflows and a tech stack that’s 30 years out of date.
As a former PE investor myself with a background in software engineering, it troubled me that the quality of tech does not match the sophistication of workflows and the talent of the parties involved.
#Investment teams deserve better: digital transformation can dramatically elevate the quality of work, reduce risk, and expand ownership in the private markets industry.”
Tom Mendoza, Partner at EQT Ventures, added:
"We had been following the space for years, and when we met Eric and Lorenzo we immediately knew they were the team to back.
The combination of their deep industry and tech expertise, compelling vision for how they will become the missing infra layer for private capital, and their early traction with industry leaders made it an easy decision."
High profile private equity industry insiders and tech angels also participated in the oversubscribed round, including former Stripe Europe CEO Matt Henderson and Volt founder Tom Greenwood. These new investors join prominent early backers, among whom are Monzo co-founder Tom Blomfield, GoCardless co-founder Matt Robinson, ComplyAdvantage founder Charles Delingpole, former FinCEN director Jim Freis, former Microsoft strategy lead Charlie Songhurst and AngelList CFO Weiheng Zhang.
Pactio will channel the proceeds of its Series A round to expand its reach and scale its team.
Lead image: Pactio. Photo: uncredited.
Would you like to write the first comment?
Login to post comments