Altruist rakes in $169m in Series E to elevate position in RIA custodian market

Altruist, the innovative custodian service provider for Registered Investment Advisors (RIAs), announced a significant financial milestone with a $169 million Series E funding round. This latest investment was spearheaded by ICONIQ Growth and saw contributions from new participant Granite Capital Management and steadfast supporters Adams Street Partners and Sound Ventures. With this new influx of capital, Altruist‘s total funding escalates to over $450 million, valuing the company at more than $1.5 billion.

Strategic Growth and Enhanced Market Position

Yoonkee Sull, General Partner at ICONIQ Growth, will join Altruist’s board of directors as part of the funding agreement. Altruist has demonstrated remarkable growth, with revenue soaring over 550% in 2023 and assets under management tripling for two consecutive years, positioning it as the third-largest custodian for RIAs, trailing only behind industry giants Schwab and Fidelity.

Yoonkee Sull expressed confidence in Altruist’s trajectory, stating, “With a fully-featured and vertically integrated platform built for RIAs, Altruist is breaking through in an industry desperate for innovation. Jason Wenk is a serial entrepreneur who has been pushing the category forward for nearly two decades, and with Altruist, he has built one of the most trusted names with RIAs today.”

Altruist raises $169 million in latest funding round, led by ICONIQ Growth.

Innovative Approach and Client-Centric Features

Altruist’s founder and CEO, Jason Wenk, reflected on the firm’s journey and its mission to revolutionize the RIA sector. “In the 15 years I spent serving clients as an RIA, we’d run into the same problems over and over—it didn’t matter if we had $10 million under management or billions. 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.”

Altruist distinguishes itself with self-clearing brokerage capabilities and advanced technology that automates and simplifies administrative tasks, thus freeing up advisors to focus more on their clients. Last year, Altruist made a significant move by eliminating all software fees for advisors using its brokerage accounts, and recently introduced a highly competitive fee schedule.

Looking Ahead: New Products and Expanding Services

Altruist is not resting on its laurels. With plans to launch new products and services in 2024, including a 5.10% APY Altruist Cash account and expanded tax management features, the company is poised for further innovation and growth. Robin Murray from Adams Street Partners noted, “Altruist is able to innovate much faster than legacy incumbents because the company is solely focused on RIAs. This focus produces significant productivity and cost benefits for independent advisors.”

The transaction and advisory details were handled by legal teams from Ropes & Gray and Simpson Thacher & Bartlett for EQT, with JP Morgan and Cooley advising the selling shareholders. Altruist expects to continue scaling its service organization to meet the needs of its rapidly growing customer base effectively.

With its latest round of funding, Altruist is strategically positioned to further disrupt the RIA custodian landscape, enhancing its offerings and expanding its market presence. This move not only solidifies Altruist’s place in the industry but also signals a promising future for RIAs seeking innovative and client-centric solutions.