Goldman Sachs’ Merchant Banking Division invested $40 million in Series A funding in lease accounting software provider LeaseQuery.

More than 10,000 accountants across public, private, nonprofit and government organizations use the LeaseQuery platform to solve one of the largest challenges in the industry: complying with the new lease accounting standards from FASB, IASB, and GASB. According to a recent LeaseQuery survey, just 5% of private companies have completed their transition.

The Atlanta-based company is on track for another record year of growth in 2019, after achieving 708% year-over-year revenue growth in 2018, and recently opened a new office in Birmingham, Ala. LeaseQuery today announced that their client base has grown from 500 companies at the end of 2018 to nearly 1,000 today.

“We founded LeaseQuery to solve a singular problem. The new lease accounting standards are incredibly complex, and accountants needed purpose-built software to comply and unlock insight about their leasing strategy,” says George Azih, CEO of LeaseQuery. “We’re thrilled to have Goldman Sachs’ investment as we continue to grow and expand our offerings to support accountants.”

The new lease accounting rules are adding trillions to the balance sheets of companies across every industry, and the challenges of implementing the rules mean that getting it right is an imperative both for accountants and businesses, and also for continued confidence in the capital markets.

“With nearly 1,000 customers, LeaseQuery is the leader in the lease accounting market,” said John Giannuzzi, vice president with Goldman Sachs’ Merchant Banking Division. “LeaseQuery is a tested, dedicated lease accounting solution built by accountants, and the company’s combination of customer insight, differentiated technology and accelerated growth is unique and exciting.”

“LeaseQuery has found a way to deliver easy-to-use solutions to their clients’ complex problems,” said Stephanie Cohen, Goldman Sachs’ chief strategy officer who founded Launch With GS, an investment strategy that aims to narrow investing gaps by directing capital and opportunities toward diverse management teams. “George and his team are a prime example of an executive team that is succeeding by bringing innovation to space that is in need of disruption.”