On EQT Ventures’ investment in Pactio, the infrastructure for private markets, an industry that is projected to reach $29 trillion by 2040
Today, we’re thrilled to lead Pactio’s $14 million Series A round. Pactio, which is building the infrastructure for private markets, has already facilitated transactions valued at $10.7 billion across a broad spectrum of major jurisdictions and asset classes. It has also garnered impressive support from some of the world’s top professional advisory companies, including partnerships with leading international tax firms and premier private equity funds. We are truly excited to join them on their journey to digitize one of the largest asset classes in the world.
Already at over $12 trillion in AUM, private markets are expected to almost triple in AUM to $29 trillion by 2040. The industry isn’t just growing in size, but also in complexity, as firms pursue increasingly sophisticated investment strategies, such as real estate, growth, and private credit, along with intricate tax structuring, co-investments, and expanded retail investor access. Keeping up with this growth requires immense resources, including swelling middle- and back-offices. The fund administration industry is a multi-billion dollar industry — that is almost completely manual.
Notwithstanding the unprecedented growth, private markets still rely on a tech stack that’s 30 years out of date, with mainly legacy tools like Excel and highly manual processes.
These traditional tools and processes are no longer adequate for the intricacy of transactions, and present increasing challenges in terms of efficiency and risk management, including vulnerability to errors and cyber-attacks. Embracing innovative technology is crucial for streamlining operations and improving transaction execution, allowing firms to allocate resources more effectively to value-add activities and maintain a competitive edge in a dynamic market environment.
“PE is on the same journey as retail banks 10 years ago”
— COO at leading PE firm
After extensive research into the private markets sector and meeting dozens of founders and industry experts, we reached a definitive conclusion: the market is ripe for a generation-defining company dedicated to building the infrastructure for private markets, creating a new category.
Pactio stands poised to transform private markets, similar to how Carta changed venture capital, Google redefined internet search, and Uber revolutionized personal transportation. We are convinced that Pactio will digitally transform the industry — driving automations and efficiencies for one of the world’s largest asset classes. Pactio stands out for the depth of its technology, which is purpose-built for enterprise complexity and captures the intricate nuances of private markets transactions. Pactio is also the first solution to insert advanced technology directly into deal creation and closing workflows in order to tackle the root causes of complexity. This sets it apart from post-closing database offerings, which are retrospective point-in-time solutions that require manual oversight and quickly become stale as a result. Instead, Pactio captures data at the point it is created and provides the infrastructure to maintain an evolving source of truth.
Founded by Eric Heimark and Lorenzo Foglianti, Pactio enables investors, lawyers, tax advisors, and fund administrators to streamline private markets investment processes throughout the whole investment lifecycle. Eric and Lorenzo’s combination of deep technical knowledge and industry experience, including firsthand experience with the inefficiencies of manual transactions, convinced us of their potential. When we met the Pactio team, we were immediately struck by their passion and dedication to excellence.
In less than two years, Pactio has already built a comprehensive platform for structuring and closing transactions, supported over $10 billion worth of transactions, developed a strong industry network across flagship private equity, accounting and law firms, and leading international tax advisors, and last but not least, hired a stellar team. Customer testimonials have highlighted that the Pactio team has managed to execute at the breakneck speed of a first-class startup while respecting the systems of the existing industry. In other words, the Pactio product thrives on the complexity that characterizes traditional private markets transactions.
When Pactio’s product gets the market traction it deserves, it will be a watershed moment for the industry. The journey to get to that point won’t be without its challenges, but we have full conviction that Eric, Lorenzo, and the rest of the Pactio team are destined to succeed.
Thank you for partnering with us.
