Addepar, the technology platform provider to RIAs and wealth managers, has raised $230 million in its Series G funding round, which valued the company at $3.25 billion. The round was led by London-headquartered Vitruvian Partners and New York-based WestCap, a returning investor.
Other participants included 8VC, Valor Equity Partners and EDBI, operating under SG Growth Capital, the investment platform of the Singapore Economic Development Board and Enterprise Singapore.
Addepar now has more than $7 trillion in client assets on its platform, up from $5 trillion a year ago. The company serves more than 1,200 firms, including single-family offices, RIAs, large banks, institutional asset owners and alternative fund managers, across more than 50 countries.
The primary use of this funding round was to give shareholders some liquidity via a tender offer, said Addepar CEO Eric Poirier. The company grants equity options to every employee upon joining. It has more than 1,000 employees.
“We’ve been very long R&D forever,” Poirier said. “At this point, we’re investing more than $100 million a year in R&D. We’re now profitable, also. In an interesting way, we don’t need this capital to operate the business at all. We’ve made the choice as a company to give all employees equity.”
That said, Addepar will continue building; in fact, more than half of its 1,000 employees are in R&D. For one, it’s working on improving the user experience for specific client verticals, such as RIAs.
“We’ve started to tailor and tune the user experience that Addepar makes available across the whole product footprint, across the whole platform, so that it’s really optimized for each one of these personas,” he said. “So now we’ll have dedicated teams, dedicated efforts and a product roadmap that really enhances Addepar for many of these different types of personas.”
It will continue to invest in artificial intelligence tech and alternative investment tools. Earlier this year, it launched Alts Data Management, Private Fund Benchmarks, and cash flow forecasts within Navigator (its portfolio projection tool).
Poirier said the Series G was not a pre-IPO round or a stepping stone to some major event.
“We’re managing the business in a way that’s frankly agnostic to staying private for a very long time or going public,” he said.
This follows a Series F round in 2021, where it raised $150 million from D1 Capital Partners, giving it a pre-money valuation of $2 billion.
Co-founders Joe Lonsdale and Jason Mirra launched Addepar in 2009.
Lonsdale, a serial entrepreneur, co-founded Palantir five years earlier in 2004, with the idea of creating software that could find connections, patterns and trends in databases of seemingly unrelated information (the federal government today uses Palantir’s technology to sniff out irregularities, fraud and possible criminal activity).
Data-related errors, unreliability, irregularities and other problems were among those Lonsdale and Mirra sought to address with Addepar. They noted these when setting up Lonsdale’s family office (and in speaking to others dissatisfied with available technology).
Over the years the firm has built integrations with many portfolio accounting, management and reporting applications and when it acquired the independent rebalancing platform AdvisorPeak in late 2021 the latter already had established integrations with nine of the top portfolio accounting systems, including Orion, PortfolioCenter and Black Diamond (and other SS&C Advent products), among others.