Riskalyze, a company that empowers thousands of advisors to align each client’s investments with its Risk Number, announced on Monday it secured a $20 million minority growth equity investment, which was led by FTV Capital. The company stated that the investment is considered its first outside institutional round and will be used to expand its line of digital offerings which already includes the company’s flagship Riskalyze product, the Autopilot robo platform, and Compliance Cloud big data analytics.
“We’re excited to expand our impact on the industry and the 240,000 advisors we built Riskalyze to serve. We founded Riskalyze on a mission to align the world’s investments with each investor’s Risk Number, and empower anyone to invest with confidence. We’re proud to have a great firm like FTV joining us on that journey.”
As part of the transaction, FTV Capital managing partner Brad Bernstein will join the company’s board of directors. He commented:
“Frequent episodes of market volatility since the financial crisis have reinforced the imperative for investment advisors to have a deep understanding of their clients’ risk tolerance. The Riskalyze team has successfully leveraged technology to build a unique digital offering that is significantly improving the advisor’s ability to quantitatively measure a client’s risk profile and build a portfolio that accurately reflects that profile. The regulatory environment, and most recently the DOL fiduciary rule, is providing further tailwinds to the rapidly growing demand for Riskalyze’s digital platform. The company’s achievements are reflected in consistently high growth and strong operating metrics, as well as industry accolades including the Wealth Management Industry Award, Fast Company Top 10 Most Innovative Companies in Finance and the Forbes Fintech 50.”
Mike McDaniel, co-founder and chief investment officer at Riskalyze, added:
“We are passionate about providing investors with a platform that gives them confidence and helps reduce fear often associated with investing, and today’s announcement propels us even faster on the path to supporting every investor,” said . “Everything we do is focused on equipping great investment advisors to do the right thing for their clients, and FTV’s track record in helping to build great companies that serve advisors will be an important asset along the way.”
Riskalyze also noted that Financial Technology Partners LP and FTP Securities LLC (together, “FT Partners”), acted as its sole strategic advisor during the transaction.