The round saw significant participation from notable figures in the private equity sector and tech angels, including Matt Henderson, former CEO of Stripe Europe, and Tom Greenwood, founder of Volt. These new investors are joining an impressive roster of early supporters, such as 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 developing the digital backbone for what is one of the world's largest asset classes, with private capital projected to grow to $29 trillion in assets under management (AUM) by 2040. However, this growth brings increased complexity. The industry has expanded from traditional leveraged buyouts to encompass a variety of investment strategies, such as private credit, infrastructure, real estate, growth, and secondaries, along with a diversifying investor base that includes more co-investment and retail participation opportunities.

Firms face challenges navigating this complexity, particularly without the appropriate tools. The current process for closing transactions is fraught with manual, error-prone tasks spread across various legacy systems and teams, including investors, tax advisers, lawyers, and fund administrators. The reliance on generic tools, which are ill-equipped to handle the intricacies of these processes, heightens the risk of errors, further exacerbated by the threat of cyberattacks.

With deep industry insight, Pactio offers a sophisticated solution to simplify 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 digitising transactions from the outset, Pactio addresses the complexities at their root, reducing risks in workflows and laying down strong digital foundations for the entire investment lifecycle. This innovation enables firms to adopt more complex investment strategies with confidence.

Pactio's platform has already gained 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 use the Series A funding to broaden the scope of its digital infrastructure and expand its exceptional team. This team blends former private market professionals with technologists who have 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, 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."