Altruist, a custodian built exclusively for registered investment advisors (RIAs), has secured $112m in its Series D funding round.
Insight Partners, a New York-based private equity and venture capital firm, served as the lead investor. Also joining the round was first-time backer Adams Street Partners. Other notable backers include Bill McNabb, Ron Carson and Marty Bicknell.
With the capital, Altruist plans to expand its service offerings and support a wider range of RIAs, including mid-sized firms that manage between $100m and $1bn in total assets.
The WealthTech company claims that its vertically integrated approach makes it the first company to combine clearing, custody and a complete suite of advisory software into a single solution.
Founded in 2018, Altruist offers an all-in-one software stack that offers account opening, trading, reporting, and billing.
Insight Partners managing director Jon Rosenbaum said, “Altruist has quietly invested an immense amount of time and resources building a truly modern custodian for RIAs.
“A vertically integrated platform that puts clearing and custody at the core is a game changer for advisors. It’s a deeply technical problem at every level that the team has solved with an intuitive user experience that’s unlike anything the RIA industry has ever seen.”
The past year has been very successful for Altruist. During 2022, it nearly tripled its AUM and its revenue grew by more than 1,700%. Further testament to its growth, Altruist expects to reach profitability this calendar year after less than five years of operating history.
Altruist previously raised $110m in its Series C funding round in November 2021. The round was led by Declaration Partners with participation also coming from Venrock, Insight Partners and Vanguard.
With the close of the Series D, Altruist has raised a total of $290m in funding.
Altruist recently acquired advisory services firm SSG and launched a new brokerage offering, which it claims has cemented its position as the third largest custodian as measured by the number of firms served.
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