Addepar, a wealth management software company co-founded in 2009 by Palantir Technologies co-founder Joe Lonsdale, announced today it has raised $140 million to expand its services to investors and their advisors. It’s a big round for a financial tech company, even for Silicon Valley.
The Mountain View, CA-based company’s Series D financing round was co-led by Valor Equity Partners, Harry McPike, and 8VC, the venture capital firm where Lonsdale is a partner. In another link to Palantir, Addepar received early financial support from PayPal founder Peter Thiel, who was also a co-founder of data analytics company Palantir.
Valor Equity Partners ties Addepar to another prominent Silicon Valley tech network. Valor’s founder and managing partner, Antonio Gracias, is an investor in companies founded by Elon Musk, and serves as a director at Tesla and SpaceX. Gracias is now joining Addepar’s board.
Addepar was created to bring the power of data analytics to the complex task of managing the multiple assets of wealthy individuals, family offices, and bank or brokerage clients. The company’s software combines in a unified database all the investment funds, hedge fund accounts, bank deposits, and other assets owned by an investor. The investors, or their financial advisors, can then assess the total holdings with an eye toward factors such as tax liabilities, portfolio rebalancing, and fund performance.
Last month, Addepar broadened the asset classes it handles by acquiring investing-tech company AltX, which uses machine-learning techniques to analyze “alternative investments.” These include real estate, hedge funds, private equity, and venture capital. At the time of the May 17 announcement, Addepar said the acquisition (terms not disclosed) contributed $120 billion of the more than $600 billion in assets managed with the help of Addepar’s software.
As it announced its new fundraising round Thursday, Addepar said its platform is now handling assets of more than $750 billion. The growth is fueled in part by “increasing global demand from major financial institutions,” the company said. In January, Addepar announced a partnership with Morgan Stanley’s Private Wealth Management.
Addepar may serve high-end customers, but it’s not alone among companies that have been deploying technology to augment wealth management with online analysis. In 2015, Northwestern Mutual bought the consumer financial planning and investing company LearnVest. Other companies open to ordinary investors are New York-based Betterment, Redwood City, CA-based Wealthfront, and San Carlos CA-based Personal Capital.
