AI-based SaaS investment management and asset servicing enterprise platform FundGuard has raised $40m to enhance global asset servicing capabilities for asset managers and their service providers.

The Series B funding round, which takes the firm’s total capital raised to more than $55m, saw investments from Citi and State Street Corp.

Other investors in the round included Blumberg Capital, LionBird Ventures, and Team8 Capital.

FundGuard CEO and co-founder Lior Yogev said: “Having the world’s leading financial services organisations join us as strategic partners and investors is an exciting endorsement of our vision to build a new-generation of global asset servicing capabilities for asset managers and their service providers.”

The proceeds from the financing round will support the firm’s growth and continued recruitment of new resources as it seeks to cater to the growing need for enhanced asset servicing capabilities among asset managers.

FundGuard President John Lehner commented: “By harnessing the cloud and AI, our technology enables our clients to be more cost-effective and offer new and innovative products at scale.

“This new investment will allow us to accelerate our growth and continue to attract top talent so that we can meet the demand we are seeing from asset managers and service providers who realise their legacy technology, simply put, costs too much and can’t do what they need it to do.”

Citi global head of Securities Services Okan Pekin said: “We are thrilled to partner with FundGuard as they have built an attractive investment servicing platform that complements our vision to leverage cloud technologies to unlock the power of data for the benefit of our clients.”

In February last year, FundGuard closed a $12m Series A investment round to accelerate its product development.