(Reuters) – Altruist said on Thursday it had raised fresh capital in a funding round that gave the custodian for registered investment advisors (RIAs) a valuation of more than $1.5 billion.
It raised $169 million in a series E funding round led by investment firm ICONIQ Growth, taking its total fund raised so far to more than $450 million. Granite Capital Management was the new investor.
WHY IT’S IMPORTANT
The funding comes at a time when global venture capital investment has dropped to a near five-year low in the first three months of 2024, according to investment intelligence firm PitchBook, due to higher borrowing costs.
CONTEXT
Altruist offers technology and tools to help financial advisors. Founded in 2018, its revenue grew more than sixfold in 2023 and assets under management tripled for two consecutive years.
The company claims it has become the third-largest custodian after Schwab and Fidelity based on RIAs served. Its existing investors included Adams Street Partners and Sound Ventures.
KEY QUOTES
“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,” said Jason Wenk, founder and CEO of Altruist.
(Reporting by Pritam Biswas in Bengaluru; Editing by Vijay Kishore)
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