Nov 20, 2023

Arch – a private investment management platform modernizing K-1 workflows, automating operations, and simplifying reporting for financial professionals – recently announced that it has raised $20 million in Series A funding. This funding round was led by Menlo Ventures, with participation from existing investors Craft Ventures and Quiet Capital and new investors Carta, Citi Ventures, GPS Investment Partners, and Focus Financial Partners. Arch plans to use the funding round to expand its team and enhance its product, focusing on streamlining the repetitive manual work traditionally associated with investing in and managing alternative investments. The company’s next-generation portal currently tracks tens of thousands of positions, encompassing over $60 billion in investments across the universe of alternative asset classes. Its client- and advisor-facing platform aggregates data and documents across every investment, thus eliminating users needing to access third-party portals. It delivers reporting-ready data directly to investors, accountants, and advisors. And Arch offers intuitive tools for users to review and efficiently manage updates within their portfolios, including new investment opportunities, capital calls, distributions, and more. Plus, Arch collects and aggregates tax documents (such as K-1s) as they are distributed, allowing users to locate these items from a centralized source when tax season arrives. The founders of Aduro Advisors, Altruist, Equi, Sydecar, and Vanilla also invested in this round, along with industry thought leaders Gary Cohn, Scott Prince, and Marc Spilker. And they were joined by members of Arch’s client base, which includes single- and multi-family offices and wealth management firms. The funding round brings Arch to over $25 million in new funding in two years. And the capital will further the development of its product roadmap, which includes automating more workflows for advisors, accountants, and their clients, thus delivering increased insights around an investor’s private markets portfolio and building additional tools to reduce the risk of fraud against investors. This funding round will also enable the firm to develop solutions that equip investors and advisors to understand better and simplify workflows related to investment manager communications. Arch serves nearly 200 families, investment firms, and institutions – including one of the largest U.S. banks. And as technology and legislation democratize widespread access to alternative investments, Arch will continue innovating to serve the growing need for private investment management. By nearly tripling its headcount over the past year, Arch plans to strategically onboard top talent across its operations, partnerships, and engineering divisions. KEY QUOTES: “Arch is building the digital backbone for the tens of trillions of dollars that sit in alternative assets. By aggregating and connecting upstream data from disparate sources, Arch unlocks highly valuable workflows and data products for investors, advisors and anyone who touches alternative asset data. We’re excited to partner with Ryan and team as they make that data more liquid and consumable for stakeholders across the financial services ecosystem.” – Croom Beatty, Partner at Menlo Ventures “Actionable, insightful data is the foundation of smart investment decisions. That’s why we built Arch – to meet the complex needs of private investors, financial advisors, banks and institutions, equipping them with a platform to efficiently manage and understand their private investments. We’re extremely thankful to our investors and clients for their support as we continue to create solutions that meet the needs of our clients and the investment community.” – Ryan Eisenman, co-founder and CEO at Arch “Arch is a powerful fintech solution that empowers advisors to manage their alternatives allocation more efficiently. As private credit, private equity, real estate and venture capital continue to capture the interest of high-net-worth investors, independent advisors require tools that give them greater scale and flexibility in managing a comprehensive portfolio that includes alternatives. I believe Arch’s product suite is poised to play an important and integral role in the alternatives ecosystem.” – Lenny Chang, co-founder at Focus Financial Partners Sponsors