Takeaways by Saasverse AI
- Arch | Series B | $52 Million | Private Investment Management Platform
- Led by Oak HC/FT with participation from Menlo Ventures, Craft Ventures, and Quiet Capital.
- Arch's managed assets surpassed $250 billion, with plans to scale its AI-driven platform and expand into new features for institutional investors and wealth managers.
Arch, an AI-powered private investment management platform, has raised $52 million in a Series B funding round led by Oak HC/FT, with additional backing from Menlo Ventures, Craft Ventures, and Quiet Capital. The capital injection will fuel Arch's ongoing expansion and development of its platform, which addresses the inefficiencies and fragmentation plaguing private markets. Targeting institutional investors, private wealth managers, and family offices, Arch aims to reshape how alternative investments are managed and executed.
Private markets are experiencing unprecedented growth, with global alternative investment assets projected to swell from $16.8 trillion in 2023 to $29.2 trillion by 2029. Yet, the infrastructure supporting private investments lags far behind its public counterpart. Unlike retail investors who enjoy streamlined platforms like Robinhood or Fidelity, private investors face a labyrinth of disparate systems and manual processes. Many family offices and limited partners (LPs) must navigate thousands of scattered investments across unique portals, emails, and outdated workflows, creating significant inefficiencies.
Arch's AI-driven platform addresses this pain point by automating the aggregation and structuring of financial data from diverse documents, such as K-1 forms and reports. Additionally, it integrates seamlessly with tools like Carta, Juniper Square, Addepar, and Black Diamond, offering investors a unified dashboard for managing assets. A standout feature, Arch Pay, simplifies capital calls, ensuring smoother operations across nearly every stage of the private investment lifecycle.
The company has achieved remarkable growth, with assets under management on the Arch platform surging from $100 billion to over $250 billion in just 14 months. Supported by a team of 160 employees, Arch has built a loyal user base, with over 50% of its clients actively recommending the platform to others. Currently, Arch serves more than 450 global allocators, including four top-tier private banks, seven of the top 25 accounting firms, and some of the world's largest private wealth and institutional investment organizations.
“ Arch's ability to centralize and simplify the notoriously complex private investment ecosystem positions it as a critical enabler in the sector's rapid expansion. By reducing friction and increasing visibility, Arch has the potential to spur greater participation in alternative investments, particularly among institutional players and high-net-worth individuals. ” Saasverse Analyst comments
Saasverse Insights
Arch is developing additional functionalities to further streamline capital calls, investment allocations, and more. The company is also exploring the potential to enable secondary market transactions, a move that could unlock liquidity in traditionally illiquid assets. Saasverse Insights highlights the broader trend of AI's transformative role in financial services, particularly in resolving inefficiencies in legacy systems. Arch's trajectory underscores the growing demand for intelligent, integrated solutions in the private markets, setting the stage for further innovation and competition in this burgeoning space.