The company says this deal, announced Thursday (Oct. 9), makes Carta “the first truly integrated platform for private credit fund managers,” combining fund administration, loan operations and investor reporting into one platform.
Terms of the deal were not released.
In a news release provided to PYMNTS, Carta CEO Henry Ward noted that private credit is among the fastest-growing asset classes, with loan operations the enterprise resource planning (ERP) “cornerstone” of this market.
“By acquiring Sirvatus, we’re expanding Carta’s ERP to serve private credit fund CFO’s with the same transparency and automation we’ve brought to private equity and venture capital,” said Ward. “The acquisition of Sivatus brings us one step closer to our mission of building the definitive system of record for the private markets — one that connects every workflow, from loan data to fund financials, taxes and LP reporting, on a single integrated platform.”
The company argues that with investors pouring capital into the private credit market, projected to reach $3.5 trillion by 2028, fund managers need “next-generation tools” to meet increased demands for speed, accuracy and transparency.
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Carta says its solution replaces cumbersome, error-prone manual tasks, letting users focus on investing and spend less time on administration.
“By integrating our loan operations platform with Carta, we unlock what private credit fund managers have long been missing: an interoperable solution covering assets, funds and investors,” said Trevor Cook, Sirvatus’ chief executive.
“Our shared vision is to give every private credit fund, regardless of size, access to purpose-built technology and real-time data to transform how they operate. We look forward to continuing to execute on this vision alongside the Carta team.”
PYMNTS charted the growth of the private credit market in a report earlier this year, citing Boston Fed data showing that banks have been increasing their exposure to non-bank financial institutions (NBFI), including private equity (PE) and private credit (PC) operations.
The data shows that large banks’ total loan commitments to PE/PC funds came to approximately $300 billion, or 14% of large banks’ total lending to NBFIs, as of the end of 2023, compared to less than $10 billion ten years earlier.
Throughout this year, PYMNTS has reported on the opportunities and growth industries fueled by private credit. AI has been a particular area of heightened investment, representing a $1.8 trillion market for funding to help develop data centers and other infrastructure.
