Chicago-based NextCapital, a digital adviser that partners with financial companies and media organizations to help people build and manage their investment portfolios, announced today that it has raised $6 million in Series A funding.
The investment was led by Russell Investments and Transamerica Ventures Fund, along with FinTech Collective, Kelvingrove Ventures and the Vermont Seed Capital Fund.
"We're a digital adviser that works with large partners to deliver world-class advice and investment management — at the lowest cost on the market," NextCapital CEO John Patterson said in a news release. "This global market requires a different approach — combining a new kind of platform for investors with a select group of long-standing players."
In 2003, NextCaptial launched the industry's first defined contribution managed accounts platform. Today it provides portfolio dashboards and wealth-forecasting software for 401(k) managed accounts. NextCapital's partners include The Wall Street Journal, MarketWatch and Barron's, as well as its most recent investors Russell Investments and Transamerica.
"We have been working with NextCapital for more than a year to deliver our clients a more personalized asset allocation for their defined contribution participants – a solution we call Russell Adaptive Retirement Accounts," Josh Cohen, managing director and head of Russell's institutional defined contribution business, said in the release. "As we look ahead, we anticipate demand for these types of enhanced default investment solutions to grow. Our expanded relationship with NextCapital will allow us to continue to find technology-enhanced ways to deliver Russell's investment expertise to a larger number of individual investors in an efficient and cost-effective way."
