#USA #New York #AI Technology #Credit Ratings #AIR Platforms

AIR Secures $6.1 Million to Revolutionize Private Credit Ratings

In a groundbreaking move, AIR Platforms, Inc. has successfully raised $6.1 million in seed funding, co-led by renowned venture capital firms Work-Bench Ventures and Lerer Hippeau. This innovative company is set to reshape the landscape of private credit ratings by implementing artificial intelligence to deliver continuous, unbiased evaluations for both public and private credit markets.

Founded by a team of industry veterans with extensive experience at major financial institutions like Moody's, Goldman Sachs, and Morgan Stanley, AIR aims to replace outdated credit rating models that have dominated the industry for over a century. These conventional methods have long been criticized for their subjectivity and inefficiency. With AIR's advanced AI technology, companies' financial health will be evaluated daily, providing investors and asset managers with timely and transparent insights into credit risks.

As private credit markets surpass a staggering $2 trillion globally, the demand for real-time and objective assessments is paramount. Unlike previous credit rating models that relied on static statistical methods, AIR's system adapts continuously, providing organizations an agile response to financial shifts and market changes.

"The legacy credit rating systems are slow and often hindered by embedded biases, leading to flawed ratings, and overlooked risks," said Glenn Carvajal, Co-Founder and CEO of AIR. He emphasizes the need for a modern approach to credit evaluation that can react swiftly to emerging trends and threats. AIR's intelligent framework is designed to improve its assessment capabilities as it receives more data, ensuring that credit risk is understood in real time rather than through retrospective analyses.

One notable example of AIR's efficacy occurred recently with First Brands, a major auto parts distributor that defaulted in September. Thanks to AIR's rapid systems, one of its clients was alerted to the deterioration in First Brands' creditworthiness well before the general market was aware of the emerging risk. This early detection allowed them to make informed decisions based on a rating that corresponded to the lower end of the speculative grade spectrum, thereby protecting their investments.

The traction gained by AIR is evident, with financial institutions managing over $4 trillion in assets now employing their services. These include CLOs (Collateralized Loan Obligations), BDCs (Business Development Companies), banks, pension funds, and notable Fortune 500 companies requiring enhanced credit risk assessments. Customers utilize AIR for early warnings of potential credit issues, stress-testing portfolios, and ensuring compliance with regulatory standards.

Jonathan Lehr, Co-Founder and General Partner at Work-Bench Ventures, expressed confidence in AIR's ability to transform the industry. Having witnessed the 2008 financial crisis firsthand, the AIR team understands the crucial factors contributing to credit failures and has demonstrated their capability to build actionable AI solutions, setting them apart from their competitors.

"AIR is addressing one of the most outdated sectors of financial infrastructure," said Andrea Hippeau, a partner at Lerer Hippeau. Highlighting the inefficiencies of existing credit rating frameworks, Hippeau noted that AIR's innovative approach has the potential to empower risk management teams with continuous ratings and comprehensive transparency. This disruptive shift allows teams to act proactively rather than reactively in managing credit risk.

With this latest investment, AIR is focused on enhancing its product offerings, expanding its talented workforce, and forging strategic partnerships. Their mission is clear: to redefine how financial institutions perceive and navigate credit risks in an increasingly complex marketplace.

For more information about AIR and how it is transforming credit analysis, visit airplatforms.com.

Contact for media inquiries:
Kathy Osborne
C 607-434-2065
[email protected]