Financial technology company Altruist has successfully raised $112 million in a Series D funding round, bringing the total investment in the firm to over $290 million. Based in Culver City, California, Altruist has previously secured $110 million in a Series C round in November 2021, which was led by Declaration Partners and included participation from Venrock, Insight Partners, and Vanguard.
In addition to the recent funding, Altruist acquired Shareholders Services Group (SSG), an advisory services company, in March. The Series D round was spearheaded by Insight Partners, with new investor Adams Street Partners joining in, as well as existing investors. Industry leaders Bill McNabb, Ron Carson, and Marty Bicknell also contributed to the round.
Altruist aims to compete with companies like Charles Schwab and Fidelity in the registered investment advisor (RIA) market by integrating self-clearing brokerage services and a suite of advisory software into a single platform. The RIA market, with $128.4 trillion in assets under management and over 3,200 new companies launched annually, remains largely inaccessible for one in three Americans due to affordability and access issues.
Founded in 2018 by industry veteran Jason Wenk, Altruist was established to address the challenges that hinder RIA growth and limit access to affordable financial advice. Wenk noted that legacy custodians have been slow to innovate and develop technology that would allow advisors to scale their services and reach a broader audience.
Altruist plans to use the newly raised funds to expand its services to a wider segment of the RIA market, specifically targeting midsized companies that manage between $100 million and $1 billion in total assets. The company reported nearly tripling its assets under management in 2022 and achieving a year-over-year revenue growth of more than 1,700%. Altruist is also on track to reach profitability within the current calendar year.