Altruist, a modern custodian tailored for RIAs, has recently announced a significant milestone in its funding journey.
The company has raised $169 million in a Series E funding round, led by ICONIQ Growth, with participation from new investor Granite Capital Management and continued support from existing investors Adams Street Partners and Sound Ventures.
With this latest injection of capital, Altruist’s total funding now surpasses $450 million, propelling its valuation to over $1.5 billion. Yoonkee Sull, General Partner at ICONIQ Growth, will be joining the board of directors as part of the funding arrangement.
Altruist has been making waves in the industry, experiencing remarkable growth with a revenue surge of over 550% in 2023 and doubling assets under management for two consecutive years. This rapid ascent has positioned Altruist as the third-largest custodian, trailing only behind industry giants Schwab and Fidelity, based on RIAs served. Notably, the company has been acknowledged by industry analyst T3 as the leading custodian advisors are considering switching to.
Commenting on the company’s success, Yoonkee Sull, General Partner at ICONIQ Growth, praised Altruist’s innovative approach, stating, “With a fully-featured and vertically integrated platform built for RIAs, Altruist is breaking through in an industry desperate for innovation.”
Founder and CEO of Altruist, Jason Wenk, highlighted the company’s mission to revolutionize the custodian space, stating, “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.”
Altruist distinguishes itself by offering a comprehensive platform tailored for RIAs, streamlining administrative tasks and portfolio management through cutting-edge technology. Notably, the company has eliminated software fees for advisors and introduced a transparent fee schedule, fostering a cost-effective environment for independent advisors.
Investor Robin Murray, Partner at Adams Street Partners, underscored Altruist’s agility in innovation, stating, “Altruist is able to innovate much faster than legacy incumbents because the company is solely focused on RIAs.”
In addition to further technological advancements, Altruist is expanding its service organization to meet the needs of its growing customer base, emphasizing responsiveness and client trust.
Looking ahead, Altruist has an ambitious roadmap for 2024, including the launch of new products and services, such as the Altruist Cash account and enhanced tax management features, cementing its position as a pioneer in the custodian space.
Keep up with all the latest FinTech news here
Copyright © 2024 FinTech Global
