Cash management and capital markets solutions Arc has launched an artificial intelligence (AI) platform for private credit. Arc Intelligence is said to be the first AI-enabled platform to tackle private credit.
The first product is AI Private Credit Analyst, designed to assist credit teams in making better investment decisions faster. Arc says it allows investors to process unstructured private company financial data and generate detailed credit memos, transforming a process that typically takes deal teams several days to a matter of minutes.
Don Muir, CEO and founder of Arc, believes that AI will revolutionize private investing and that after two years of development, they have “cracked the code” on financial automation.
“Our AI platform was built hand-in-hand with the world’s leading private credit investors, who are active members of Arc Capital Markets. Our private credit marketplace, which actively processes billions in loan volume, has empowered Arc’s AI engineering team to develop a proprietary technology capable of completing complex financial analysis with near-perfect accuracy.”
Arc notes that historically, credit funds have depended on offline and manual processes to collect and analyze borrower data before producing reports. This analog process of slow data ingestion and repetitive analyses means credit analysts spend days developing a basic picture of the businesses they’re evaluating. Arc Intelligence aims to change that.
The private credit market is growing rapidly jumping by 50% in the past three years. Arc points to data that indicates private credit will e a $2.8 trillion market by 2028.
As more parties are interested in the sector, there is a growing demand for tech that facilitates and streamlines the process.
BJ Lackland, co-founder and Managing Director of Equal Capital, sited by Arc as an early user says Arc Intelligence transforms how they do business.
Arc’s AI Analyst launched in private beta in September and is now said to be available to over 150 institutional lenders active in Arc Capital Markets, their private debt marketplace.