Altruist, a wealth management startup based in Los Angeles, has secured $169 million in funding, bringing its valuation to over $1.5 billion. Led by Iconiq Growth and with participation from Granite Capital Management, Adams Street Partners, and Sound Ventures, this investment underscores Altruist's rapid growth trajectory in the financial services industry. The company, positioning itself as a modern custodian, aims to challenge industry incumbents like Charles Schwab Corp. and Fidelity by offering technology-driven solutions for financial advisers, including software and apps for account management and trading.
Founder and CEO Jason Wenk highlights Altruist's mission to improve upon outdated technology within the wealth management sector, targeting smaller advisory firms seeking cost-effective and efficient scaling solutions. With revenue soaring over 550% in 2023 and assets under management tripling for two consecutive years, Altruist's approach has garnered attention not only from investors but also from underserved investors, including those in lower-income brackets. While an IPO remains a long-term goal, Wenk acknowledges that the company's focus is on continued innovation and market expansion. The involvement of Iconiq Growth general partner Yoonkee Sull on Altruist's board underscores the recognition of Altruist's potential for disruption and innovation in an industry ripe for change.
