Pactio raises $14 million (£11 million) Series A funding round, led by EQT Ventures.
Pactio, a digital infrastructure platform serving the private markets, has announced a successful $14 million (£11 million) Series A funding round, led by EQT Ventures.
The round attracted significant participation from prominent figures in the private equity sector and technology angels, including Matt Henderson, former CEO of Stripe Europe, and Tom Greenwood, founder of Volt. These new investors join an impressive lineup of early supporters, including Tom Blomfield, co-founder of Monzo; Matt Robinson, co-founder of GoCardless; Charles Delingpole, founder of ComplyAdvantage; Jim Freis, former director of FinCEN; Charlie Songhurst, former Microsoft strategy lead; and Weiheng Zhang, CFO of AngelList.
Pactio is pioneering the digital backbone for one of the world’s largest asset classes, as private capital is expected to grow to $29 trillion in assets under management (AUM) by 2040. However, this growth also brings increased complexity. The industry has expanded beyond traditional leveraged buyouts to include various investment strategies, such as private credit, infrastructure, real estate, growth, and secondaries, alongside a diversifying investor base that includes more co-investment and retail participation opportunities.
Firms encounter challenges navigating this complexity, especially without the appropriate tools. The current transaction closure process is filled with manual, error-prone tasks spread across various legacy systems and teams, including investors, tax advisers, lawyers, and fund administrators. Reliance on generic tools ill-equipped to handle these intricacies heightens the risk of errors, further compounded by the threat of cyberattacks.
With deep industry expertise, Pactio offers a sophisticated solution to streamline the flow of private capital. Its technology integrates advanced solutions, such as AI, directly into the initial stages of deal creation and closing processes. By digitizing transactions from the outset, Pactio addresses complexities at their source, reducing risks in workflows and establishing robust digital foundations for the entire investment lifecycle. This innovation enables firms to embrace more complex investment strategies with confidence.
Pactio’s platform has already garnered significant traction, earning support from leading professional advisers, including Big 4 tax firms and major international law firms, as well as top private equity companies. With strong endorsements from both its industry network and investor base, Pactio plans to leverage the Series A funding to expand the scope of its digital infrastructure and grow its exceptional team. This team combines former private market professionals with technologists possessing deep expertise in fintech and machine learning. The focus will be on enhancing its platform with single-source-of-truth functionality and integrating advanced AI features to maintain its leading edge in private market technology.
Eric Heimark, Co-Founder and Chief Executive Officer at Pactio, remarked: “Private markets are evolving into one of the largest and most complex asset classes globally, yet this progress is hindered by reliance on manual workflows and outdated technology stacks. 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 significantly 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.”