Cardo AI raises $15m to disrupt outdated systems in asset-based finance

Cardo AI, a leading next-generation asset-based finance and private credit technology platform, has raised $15 million in its Series A funding round. The investment was co-led by Blackstone Innovations Investments, Blackstone’s early-stage strategic investment arm, FINTOP Capital, and JAM FINTOP. The round also saw participation from Andy Horwitz and Kevin MacDonald, the co-founders of Black Mountain Systems.

The funding underscores the demand for innovation in the $40 trillion asset-based finance and private credit market, which has been slow to move away from outdated systems, manual processes, and fragmented data structures. As the market expands with increasingly intricate investment strategies, Cardo AI is poised to revolutionise operations with its advanced portfolio modelling and collateral data management technology. The platform enables seamless investment decision-making and portfolio monitoring for stakeholders, including investors, banks, and servicers, by leveraging advanced software workflows, predictive AI algorithms, and a powerful data engine.

Since its founding in 2018, Cardo AI has rapidly expanded across Europe, with early backing from Fasanara Capital. Earlier this year, the company ventured into the U.S. market and has already onboarded several prominent private credit and asset-based finance investors. Blackstone, a co-lead in the Series A round, is integrating Cardo AI’s technology into its Credit & Insurance operations to enhance direct lending and asset-based finance processes.

FINTOP Capital and JAM FINTOP, the other co-leads, bring deep expertise and access to a strategic network of nearly 100 regional and community banks. FINTOP’s Rick Kushel, who has over three decades of experience in building companies such as iLevel Solutions and DealCloud, played a pivotal role in leading this investment.

Altin Kadareja, Cardo AI’s Founder and CEO, stated that the company’s U.S. expansion, supported by prominent investors, signifies the growing demand for its innovative solutions. He expressed confidence in the platform’s potential to scale the market and enhance operational efficiency for clients.

John Stecher, Chief Technology Officer at Blackstone, highlighted the need for scalable technological solutions in the rapidly growing alternative credit sector. He noted that Cardo AI’s robust portfolio management capabilities were particularly impressive for handling complex instruments.

Rick Kushel, Managing Partner at FINTOP Capital, emphasised the transformative potential of Cardo AI’s technology in an industry that has been slow to embrace innovation. Kushel expressed optimism about supporting Cardo AI in setting a new standard in asset-based finance and private credit technology.