Financial technology company Altruist has raised $112 million in a Series D round that brings its total funding to date to more than $290 million.
The Culver City, California-based company's new financing adds to a previously undisclosed $110 million Series C raised in November 2021, led by Declaration Partners with Venrock, Insight Partners and Vanguard participating.
The funding also comes on the heels of Altruist’s acquisition in March of advisory services company Shareholders Services Group (SSG).
The Series D was led by Insight Partners, new investor Adams Street Partners and participation from existing investors. Industry leaders Bill McNabb, Ron Carson and Marty Bicknell also participated in the round.
Altruist, which combines self-clearing brokerage services with a suite of advisory software into one program, said it aims to use the financing to take on companies such as Charles Schwab and Fidelity in the registered investment advisor (RIA) market.
Altruist said the RIA market has $128.4 trillion in assets under management and more than 3,200 new companies launched annually, yet only one in three Americans currently works with a financial advisor due to access and affordability.
Altruist was created in 2018 by industry veteran Jason Wenk, who saw firsthand the challenges that inhibit RIA growth and limit the reach of affordable financial advice.
“While the RIA industry has evolved rapidly over the past 20 years, the custodians serving them have not,” Wenk said in a statement. “Legacy custodians have little incentive to innovate and rebuild technology that would enable advisors to scale and reach as many people as possible.”
The company said it plans to invest the funds it has raised to further develop and expand its services to a broader segment of the RIA market, including midsized companies that manage between $100 million and $1 billion in total assets.
Altruist said it nearly tripled assets under management in 2022 while growing revenue by more than 1,700% year-over-year. The company also expects to reach profitability this calendar year.
