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Addepar Earns $1B Valuation with $150M Funding


Addepar Inc, the noted wealth management software solution, has doubled its valuation, touching a whopping $2.17 billion after its latest round of funding. Addepar had earlier raised a sum of $150 million from D1 Capital Partners, the hedge fund entity based in New York. It was earlier valued at close to $1 billion after the last funding round as per streetjournal partners novemberchung. Previous investors in the company include WestCap Group and Valor Equity Partners, and Addepar was founded in 2009 by Palantir Technologies Inc, and serial entrepreneur and co-founder, Joe Lonsdale.

Chief Executive at Addepar, Eric Poirier, stated that market turbulence and a desire to forecast future developments to client portfolios throughout the pandemic have led to recent and skyrocketing growth at the company. The company is based at Mountain View in California and creates software that is tailored to the needs of banks, investment advisers, family offices and other stakeholders and this aims at making investment portfolio tracking simpler while ensuring better performance of the same throughout multiple assets classes. Addepar presently helps in tracking approximately $2.7 trillion in assets while adding weekly assets of $15 billion from mid-2020 onwards.

Poirier also stated that the business has mostly relied on human trust from inception and the usage of technology for serving clients is naturally a major evolution in the sector. He has not confirmed company profitability or disclosed revenues although he has stated that Addepar is looking to swiftly onboard assets and clients alike. The company anticipates overall demand of $200 trillion worldwide for assets that are investible. Some of its clients also include Morgan Stanley, Alliance Bernstein Holding LP and Stifel Financial Corp. Lonsdale previously spearheaded the company for a period of three years and is now the Chairman of the Board. He has called it as an operating system for the entire financial space. He also forecasts more users coming to the company since it aggregates massive information chunks that may help with better decision-making.

Addepar could also have an entire suite of applications revolving around software in the near future. Along with offering simpler reporting of performance, Addepar also helps clients track their net worth easily and its Marketplace feature also offers more data on investment-linked products like private equity funds, hedge funds and private company shares. The technology base of the company had taken more time to build than expected according to Lonsdale. He also stated that there were issues to tackle in terms of wealth management including data distribution among innumerable administrators of funds and custodians of information.

Addepar will use these funds for accelerating its sales teams worldwide and especially throughout Europe while investing in continued research and development. Poirier also confirmed that 90% of the company’s customer base is present in the U.S. D1 Principal Prateek Bhide has also stated that Addepar has a massive opportunity to achieve global growth. It will adopt a role of a board observer at the company after the latest funding round. The hedge fund has invested across private and public entities ever since it was founded in the year 2018. The board member of Addepar, David Obrand, has now become the President of the company.

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