Altruist Raises $169M Series E to Set a New Standard in Wealth Management
2024年5月2日 - 10:00PM
ビジネスワイヤ(英語)
The new round of funding values the financial
technology company north of $1.5B, on the heels of 550% YoY revenue
growth and tripling AUM for a second consecutive year
Altruist, the modern custodian built for RIAs, today announced a
$169M Series E round of funding led by ICONIQ Growth with
participation from new investor Granite Capital Management, and
continued support from existing investors Adams Street Partners and
Sound Ventures. The new round brings the company’s total funding to
over $450M and values the company north of $1.5B. In conjunction
with the funding, Yoonkee Sull, General Partner at ICONIQ Growth,
will be joining the board of directors.
After growing revenue over 550% in 2023 and tripling assets
under management for two consecutive years, Altruist has quickly
become the third largest custodian behind Schwab and Fidelity
(based on RIAs served). This year, the company was recognized by
industry analyst, T3, as the #1 custodian advisors are considering
switching to.
“With a fully-featured and vertically integrated platform built
for RIAs, Altruist is breaking through in an industry desperate for
innovation,” said Yoonkee Sull, General Partner at ICONIQ Growth.
“It's rare to see a new company in the custodian space nail the
fundamentals while carving out a substantial customer base in a
market dominated by legacy financial institutions. Jason Wenk is a
serial entrepreneur who has been pushing the category forward for
nearly two decades, and with Altruist, he has built one of the most
trusted names with RIAs today.”
While all custodians share responsibility for safekeeping assets
and adhering to rigorous regulatory requirements, their business
practices vary. Custodians can influence investment options, tax
savings, yield on cash, portfolio performance, fees, and the
quality of the user experience for clients and advisors alike.
Considering the size and scale of the industry–approximately $114T
assets across 61.9 million clients–even subtle differences can have
significant downstream effects on client outcomes.
“In the 15 years I spent serving clients as an RIA, we’d run
into the same problems over and over–it didn’t matter if we had $10
million under management, $100 million, or billions,” said Jason
Wenk, founder and CEO of Altruist. “Features that were obviously
better and available to retail investors weren’t available to
people working with advisors. The best way to help more people get
more from their money is to provide independent advisors with
better software, better service, and the tools to drive better
client outcomes.”
In addition to its self-clearing brokerage capabilities,
Altruist offers technology that automates and simplifies
administrative work, integrates with adjacent services, and
streamlines portfolio management tasks so that advisors have more
time for client-facing activities. These time-savings are
complemented by an equal emphasis on cost savings. Last year,
Altruist eliminated all software fees for advisors using its
brokerage accounts. Earlier this month, they released the most
simple, transparent, and competitive fee schedule in the
industry.
“Altruist is able to innovate much faster than legacy incumbents
because the company is solely focused on RIAs,” said Robin Murray,
Partner at investor Adams Street Partners. “This focus produces
significant productivity and cost benefits for independent
advisors.”
Alongside further investments in technology, Altruist is scaling
its service organization with highly trained staff to meet the
needs of its rapidly growing customer base. “Addressing
time-sensitive client requests is a big part of an advisor’s job,”
said Wenk. “Our ability to resolve issues quickly is one of the
main reasons RIAs are leaving legacy custodians and coming to
Altruist. A responsive support organization helps advisors build
and maintain client trust.”
The company has an exciting roster of new products and services
lined up for 2024, including its 5.10% APY Altruist Cash account
announced last month, an expanded service offering, and upcoming
tax management features.
To learn more about the latest round of funding, read CEO Jason
Wenk’s announcement here.
ABOUT ALTRUIST
Altruist is the modern custodian for independent RIAs. Altruist
combines a self-clearing brokerage firm with intuitive software for
account opening, trading, reporting, and billing – all in one
streamlined solution. With Altruist, you can create custom models,
trade fractional shares, automate rebalancing, and share
performance with clients using a modern mobile app. Learn more at
https://www.altruist.com and follow Altruist on Twitter
@altruist.
Keep in mind, other brokerage fees, Model Marketplace fees and
related expenses may apply on your client's assets. Please see the
Altruist Financial LLC and Altruist LLC Fee Schedules and
Subscription Pricing on altruist.com/legal to learn more.
Altruist Corp ("Altruist") offers technology and tools designed
to help financial advisors achieve better outcomes. Advisory and
certain other services are provided by Altruist LLC, an
SEC-registered investment adviser, and brokerage related products
and services are provided by Altruist Financial LLC, a member of
FINRA/SIPC. Nothing in this communication should be construed as an
offer, recommendation, or solicitation to buy or sell any security.
Additionally, Altruist or its affiliates do not provide tax advice
and investors are encouraged to consult with their personal tax
advisors. Clearing and custody of securities provided by Altruist
Financial LLC. © 2024 Altruist Corp 3030 S La Cienega Blvd Culver
City, CA 90232.
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Media contact: Sam Marinelli, Gregory FCA on behalf of Altruist
610-246-9928 sam@gregoryfca.com