Wealthtech Addepar has Raised Nearly $500M to Date, Now Tracking Over $2.9T in Assets

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Addepar, a U.S.-based wealth manager with $2.5 trillion of assets on its platform, had secured $150 million in capital in June of this year.

Addepar‘s management recently revealed that they’re planning to further expand business operations outside the US. The company confirmed that it’s hiring for 100 new roles.

Demand for Addepar’s services indicates that the wealth management services sector is growing steadily. Just a week after the COVID-19 outbreak (in March 2020), Addepar, the wealth management-tech firm from Mountain View, California, had finalized a $40 million round.

At the start of the Coronavirus pandemic, it was quite an uncertain time for individuals and businesses globally. Companies had been forced to re-evaluate their business models and strategies due to unprecedented circumstances.

But financial advisors struggled to address the concerns of their clients, but Addepar reports that its software appeared to be even more useful than it had ever been.

Fast forward 8 months to November 2020, Addepar reported acquiring an additional $117 million in capital. More recently, hedge fund manager D1 Capital Partners contributed $150 million into the firm’s operations, which include aggregating and analyzing large amounts of financial data in order to help asset managers with effectively monitoring their clients’ funds.

Addepar’s (approximately) 600 clients reportedly include AllianceBernstein, Morgan Stanley, Stifel Financial, and Tiedemann Advisors. Addepar has secured $494 million in funding, to date.

Wealth firms including established family offices have been looking for advanced software to help them with viewing customers’ portfolios across different asset classes in a more intuitive manner, Addepar CEO Eric Poirier told Insider.

Poirier confirmed that they’re signing on more customers than ever before. Poirier also claims that user engagement and existing customers are higher than ever.

Poirier, who had decided to work at Addepar back in 2013 after his role at data analytics platform Palantir, says that they think the market is coming their way, so they’re hiring new talent to address requirements.

Addepar, which tracks over $2.9 trillion in assets, has reportedly onboarded 100 customers in 2021, a representative told BI.

Established in  2009 by Palantir co-founder Joe Lonsdale and businessman Jason Mirra, Addepar has managed to attract top execs from BlackRock, Morgan Stanley, and other major institutions.

The company is recruiting for 100 new positions that are focused on engineering, R&D, and customer service. Poirier revealed that the company currently has 22 interns.

Addepar is able to make money from its clients who pay software licensing fees. The fee structure is different based on client segments, however, the company explains that they charge a certain percentage of a firm’s AUM.

At present, only 10% of Addepar’s clients and revenue come from outside the US. Poirier pointed out that as they continue to expand globally, they intend to onboard more customers in other jurisdictions which is a key priority.

Addepar also noted that they have clients in 25+ countries (Asia, Europe, Australia).

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