Fundcraft secures €12m to expand digital fund operations

Luxembourg-based fund operations provider Fundcraft has raised €12 million in strategic growth financing to expand its digital infrastructure for alternative investment funds. The funding takes its total capital raised since 2021 to €40 million as demand grows for technology-led administration of increasingly complex private-market structures.

Fundcraft has secured €12 million in strategic growth financing as the Luxembourg-based fund operations provider looks to expand its digital infrastructure for European alternative investment funds.

The round was co-led by Riverside Acceleration Capital and CCAP Investments, with existing investors including 3VC, MiddleGame Ventures and Aperture Capital also participating. The latest financing brings Fundcraft’s total capital secured since its 2021 founding to €40 million.

Fundcraft provides digital fund operations infrastructure to alternative investment managers, covering areas including fund administration and operational processes. The company said the new capital will support expansion across jurisdictions and asset classes as private-market operating models become increasingly complex.

The development comes as alternative investment managers face growing pressure to modernise their operating infrastructure. Private equity, private credit and other private-market strategies typically require more complex investor servicing, reporting and regulatory processes than traditional liquid funds, while managers are increasingly seeking to expand into new markets and distribution channels.

For asset managers, the attraction of technology-led fund operations is not simply automation. A scalable operating platform can help managers launch and administer new vehicles without building an equivalent infrastructure internally, potentially allowing investment teams to focus resources on fundraising and portfolio management.

Fundcraft said the financing would support its next phase of growth across jurisdictions, asset classes and increasingly complex private-market operating models. That focus reflects the broader shift towards technology becoming a core component of fund infrastructure rather than a separate back-office consideration.

The funding also highlights growing investor interest in the technology supporting private markets. As alternative managers broaden their product ranges and seek to serve a wider institutional and wealth-investor audience, administrators increasingly need to provide systems capable of handling different fund structures, jurisdictions and reporting requirements.

For fund managers, the direction of travel could mean greater choice between traditional administration models and technology-first providers. For administrators, meanwhile, investment in automation and scalable infrastructure is becoming increasingly important to remain competitive as private markets expand.