K1x, a US-based AI-native private markets tax data platform, has raised $175 million (€161 million) in growth capital led by Sumeru Equity Partners, with participation from existing investor Edison Partners, according to International Accounting Bulletin.

The company's patented platform uses AI to streamline extraction, validation and distribution of tax data from K-1s, K-3s and 1099s, while simplifying Internal Revenue Service-certified 990 e-filing. K1x will use the funding to enhance its core platform, accelerate product development and broaden machine learning and generative AI deployment across its offering. The company also plans to invest in customer support and client experience.

John LaMancuso, CEO at K1x, said: "Where tax compliance in public markets runs like a Swiss watch, private markets still run on manual processes, unstructured documents and data, and fragmented systems that cannot scale. The complexity of K-1 forms, compounded by the increase in volume, proves that the operational strain is no longer seasonal – it is structural."

The platform supports 44 of the 100 largest US institutional investors and 20 of the top 25 accounting practices. Sumeru will take a majority stake in K1x, while Edison's involvement marks its third investment in the company since 2022.

Kyle Ryland, managing partner at Sumeru, said: "Private market tax data is one of the last major workflows in financial services still running on manual processes and spreadsheets – K1x is purpose-built to change that. We look forward to partnering with the team to accelerate growth in a market that remains over 90% unserved and increasingly critical as the $20tn+ alternatives landscape expands."

In January, GruntWorx partnered with K1x to embed the technology into a new tax data processing solution aimed at accounting companies and tax practitioners.

Explore K1x's AI-native tax data platform capabilities and expansion strategy in the complete report.