Arcline Fund III delivered a standout Q3, driven by continued acceleration in our AI/ML and Fintech verticals. Net portfolio value increased 12.3% quarter-over-quarter, outpacing our benchmark by 340 basis points. Three new investments were made during the period, deploying $38M of committed capital into high-conviction opportunities across enterprise AI, climate infrastructure, and digital health.
Our top performer, Lattice AI, achieved a 4.8x return on invested capital following a successful Series C at a $780M valuation. Fund reserves remain healthy at $124M, positioning us well for follow-on opportunities into 2026. We maintain a disciplined approach to portfolio construction with a focus on capital-efficient businesses demonstrating durable competitive advantages.
Net portfolio returns by quarter, 2025 fiscal year
Portfolio companies ranked by return multiple as of September 30, 2025
| Company | Sector | Investment | Current Value | Multiple |
|---|---|---|---|---|
|
Lattice AI
Series A · 2023
|
Enterprise AI | $12M | $58M | 4.8x |
|
Clearpath Energy
Series B · 2022
|
Climate Tech | $18M | $63M | 3.5x |
|
Noma Finance
Series A · 2023
|
Fintech | $10M | $31M | 3.1x |
|
Helix Diagnostics
Series B · 2022
|
Digital Health | $15M | $41M | 2.7x |
|
Vanta Robotics
Series A · 2024
|
AI / Automation | $8M | $19M | 2.4x |
Percentage of total committed capital across active portfolio
AI/ML concentration increased from 28% to 34% following the Vanta Robotics and Nimbus Data investments in Q3.
Fintech exposure stable at 22%, with Noma Finance driving the bulk of returns in the vertical.
Climate thesis strengthening as Clearpath Energy approaches profitability, validating our early-stage conviction.
Three new portfolio companies added during the quarter