PactFi Secures $25 Million in Series A Funding
PactFi, a New York City-based company, has successfully raised $25 million in a Series A funding round. The round was led by 7RIDGE Ecosystem Impact Fund (EIF), with additional participation from Vestigo Ventures. Founded by Emma Zhang, who also serves as the CEO, PactFi offers a secure platform designed to manage complex private credit transactions. The platform provides an end-to-end operational infrastructure, aiming to streamline the deal process by replacing traditional methods such as email chains and spreadsheets with more efficient shared workflows.
Industry Context and Platform Impact
The private credit market has seen significant growth, escalating from approximately $550 billion in 2016 to an estimated $1.7 trillion in 2026. Despite this growth, many firms continue to rely on outdated, manual processes that introduce operational complexities and risks. PactFi addresses these challenges by providing a shared operating environment that enables cross-counterparty workflows. The platform acts as a centralized system of record, streamlining data, processes, and oversight throughout the transaction lifecycle.
Since its launch in 2023, PactFi has processed over $300 billion in deal volume across more than 250 counterparties. It boasts over 2,600 users and supports eight of the top 20 credit asset managers, who collectively manage $3.4 trillion in assets.
Planned Use of Funds
With the fresh capital from the Series A round, PactFi plans to broaden its platform capabilities and strengthen its position within the private credit ecosystem.
Product Expansion
The company aims to extend its workflow coverage beyond deal closing to include additional aspects of the asset lifecycle, such as post-close servicing and secondary transfers.
Accelerated Growth
PactFi is set to expand its industry relationships and drive adoption among counterparties and service providers, including administrative agents.
Research and Development
There is a focus on integrating AI into credit-specific workflows, which is expected to reduce manual processes and operational risks while enhancing execution efficiency.
Team Expansion
The company plans to increase the size of its product, engineering, and client-facing teams to support ongoing platform development and growth within the ecosystem.
Conclusion
This latest funding round marks a significant milestone for PactFi as it continues to scale and innovate within the private credit sector. With a robust plan for expansion and technological integration, the company is well-positioned to address the operational challenges faced by participants in the private credit market.