Upstart RIA custodian Altruist has $50m of new capital after closing a Series B funding round led by private equity firm Insight Partners. Vanguard and existing investor Venrock, a Palo Alto, Calif.-based venture capital firm, also contributed to the round.
Altruist, founded by Jason Wenk in 2019 in Los Angeles, offers commission-free asset management, performance reporting, client dashboards and other tools for RIAs in a central digital platform. Apex Clearing provides custodial services for RIAs who work with Altruist.
A company representative told Citywire that Altruist will use the funding to ‘accelerate our product development and to further expand our advisor experiences.’
New York-based Insight Partners is a new backer for Altruist. Principal Jon Rosenbaum will join Altruist’s board in tandem with the investment, while co-founder and managing director Jeff Horing will take what Altruist described as ‘an observer seat’ on its board. The exact amount of Insight Partners’ contribution to the funding round was not disclosed.
Venrock has backed Altruist since the software company’s launch. The VC investor led an $8.5m Series A funding round that year, and saw partner Nick Beim appointed to Altruist’s board.
Venrock also led an under-the-radar funding round of an undisclosed amount for Altruist in January of 2021. That round saw additional personal investments in Altruist from Ron Carson, founder and chief executive of The Carson Group, and William McNabb, the former chairman of the board and longtime chief executive of Vanguard. McNabb joined Altruist’s board at the time.
Altruist also has an ongoing relationship with Vanguard in that advisors who use Altruist’s newly launched model marketplace can access model portfolios managed by the Pennsylvania investment firm.
This article originally appeared on CityWire.
