PactFi has secured USD 25 million in a Series A funding round to broaden its platform for the private credit sector.

The investment was spearheaded by 7RIDGE’s Ecosystem Impact Fund, with additional support from Vestigo Ventures. The funds will be utilized to enhance product offerings, promote market traction, incorporate AI into credit processes, and bolster the company’s workforce.

In the United States, the private credit industry has experienced significant growth over the last decade, escalating from about USD 550 billion in 2016 to an estimated USD 1.7 trillion by 2026. Industry forecasts indicate it could reach USD 3.5 trillion by 2028. However, many businesses and organizations still operate with disjointed systems, emails, and spreadsheets, which can lead to operational risks and reduced visibility in the lifecycle of transactions.

Founded in 2023 by industry experts, PactFi was designed to address these systemic inefficiencies. The platform facilitates cross-counterparty workflows within a unified operational space, captures and organizes data across the private credit cycle, and supports seamless processing with centralized visibility.

Capital Allocation

The Series A funding will support expansion in four key areas. Product-wise, PactFi aims to extend its workflow beyond deal closure to cover post-close servicing and secondary transfers. Market entry strategies will focus on reinforcing relationships with existing partners and expanding adoption among service providers and administrative agents.

Additionally, the company plans to integrate AI directly into core credit workflows, embedding automation at the execution level rather than as standalone tools. Growth in teams responsible for product development, engineering, and client relations is also anticipated.

Security and Compliance Measures

As institutional investment in private credit increases, operational robustness and auditability are becoming critical. PactFi is certified under ISO 27001 and holds SOC 2 Type II attestations, positioning it well to cater to the governance and security needs of large asset managers operating under heightened regulatory scrutiny.

This round of funding underscores growing investor interest in infrastructure for private markets, where the disparity between asset expansion and operational sophistication has attracted both tech providers and financial institutions looking for standardized, auditable processes.