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The
company said on Thursday that it will use the funding on
research and development initiatives aimed at enhancing its
technology.
Addepar has developed software that helps wealth managers view
information on their clients' assets that might be spread out
across various accounts.
Ultra-wealthy clients typically hold their assets in family
trusts, limited partnerships or in alternative and illiquid
investments spread across several banks and accounts. This means
financial advisors will often gather and compile information
into one spreadsheet through a protracted process rather than
meeting with clients.
"Wealth managers, especially the ones serving larger and more
complex clients, often times have challenges in giving each
client an accurate view of everything they own," said Eric
Poirier, chief executive of Addepar, in an interview. The
company's platform allows wealth management firms, with client's
permission, to gather information from various accounts in one
place, Poirer said.
Addepar is among the growing group of young technology companies
that are seeking to help established financial institutions
improve their technology across a wide range of functions,
including anti-money laundering checks to client-interface
software.
While the firm has so far focused on wealth management firms,
Poirier said it had received inquiries from other buy-side
companies such as pension funds.
Poirier said the firm has been growing rapidly, with its clients
managing more than $650 billion through its platform, up from
$300 billion 18 months ago. In January Morgan Stanley <MS.N>
said it was rolling out Addepar's platform to 20 of its top
financial advisory teams.
Valor Equity Partners founder and managing partner Antonio
Gracias, who sits on the Addepar's board of directors, is well
known for being an investor and board member in several
companies of Tesla Inc <TSLA.O> founder Elon Musk.
(Reporting by Anna Irrera; Editing by Shri Navaratnam)
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