K1x, a US-based AI-native private market tax data platform, has raised $175 million in growth funding.
The financing was led by Sumeru Equity Partners, with participation from existing investor Edison Partners.
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The company’s patented platform uses an AI-native approach to streamline the extraction, validation, and distribution of tax data from K-1s, K-3s, and 1099s to simplify Internal Revenue Service-certified 990 e-filing.
K1x plans to use the new funding to strengthen its core platform, accelerate product development, and expand the use of machine learning (ML) and generative AI (genAI) across its products.
The company also plans to invest in customer support and overall customer experience.
K1x CEO John Lamancuso said: “While tax compliance operates like a Swiss watch in the public market, the private market still operates with manual processes, unstructured documents and data, and fragmented systems that cannot scale.
“The complexity of K-1 forms is further exacerbated by increased volume, proving that the operational burden is no longer seasonal, but structural.
“We are excited to work with Sumeru to solve our ongoing tax data infrastructure challenges.”
The platform says it supports 44 of the 100 largest institutional investors in the U.S., 20 of the top 25 accounting practices, and more.
The capital injection will give Sumeru a majority stake in K1x, and Edison’s involvement marks its third investment in the company since 2022.
Kyle Ryland, Managing Partner at Sumeru, commented on the investment: “Private markets tax data is one of the last major workflows in financial services still run in manual processes and spreadsheets. K1x was purpose-built to change that.”
“We look forward to partnering with the team to accelerate growth in a market that is more than 90% underserved and increasingly important as the $20 trillion+ alternatives market expands and investment structures become more complex.”
In January of this year, GruntWorx partnered with K1x to incorporate K1x’s technology into a new tax data processing solution aimed at accounting firms and tax professionals.
