Personal Capital Exceeds $7 Billion AUM, Lands $15 Million Credit Extension

Wealth tech player Personal Capital surpassed a growth milestone this week, reaching $7 billion in assets under management. The company also announced it received a $15 million credit extension from Silicon Valley Bank, adding to the $25 million credit the bank offered Personal Capital in 2016.

Personal Capital balances its high-touch digital advisory services with freemium tools that help users track all of their investments in one place and measure their progress against their retirement goals. The company also offers access to registered personal financial advisors who offer tailored investment advice for a fee. While this model seems to have scaled relatively well since Personal Capital’s launch in 2009, the company’s assets under management have not grown as quickly as its competitors Betterment, which currently has $13.5 billion under management, and Wealthfront, which has $10 billion under management.

This news comes as the company wraps up one year of operation under new CEO, Jay Shah, who took over operations from the company’s founder and original CEO, Bill Harris. Before his appointment, Shah served in the roles of Personal Capital’s chief information officer and chief operating officer.

“Personal Capital was built on the idea that transparency and a consumer’s ability to have a holistic view of their finances can transform their financial life,” said Shah. “Our team has worked hard to make sure Americans have the visibility that is necessary to realize their investing, spending and saving goals. As Registered Investment Advisors, we remain committed to putting clients first and advocating for an industry-wide fiduciary standard. Clearly, that is resonating.”

Founded in 2009, Personal Capital most recently presented at FinovateSpring 2014 where it debuted One Click Investment Portfolios. Earlier this spring, the company began offering socially responsible tools that make it easy for investors to put money into causes that matter to them. Personal Capital has raised $240 million.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

WealthSpark Replaces the Personal Capital 401(k)

Wealth tech company Personal Capital has launched a new 401(k) product through Alight Solutions, which will market the product to employers. WealthSpark, the new offering, is a joint effort between Personal Capital and AllianceBernstein (AB).

The new tool is a qualified default investment alternative (QDIA) in an employer-provided savings plan. A QDIA aims to encourage employees to invest assets in appropriate long-term savings vehicles.

To help users find those savings vehicles, WealthSpark leverages AB’s customized investment portfolios and combines it with Personal Capital’s digital wealth management planning tools, which curate 18 data points about a user’s financial situation and future plans. This information helps WealthSpark users understand their current finances as well as gain insight for decisions about their future, such as education, retirement, and buying a home.

Jennifer DeLong, head of defined contribution at AB, said, “The solution combines asset allocation with technology to deliver a more personal participant experience. By better understanding a participant’s individual circumstances, we can create a series of optimized glide paths to tailor outcomes to participants’ unique financial objectives.”

WealthSpark isn’t Personal Capital’s first foray into employer-sponsored plans. At FinovateFall 2012, the California-based company launched its own plan– the Personal Capital 401(k)— a professionally managed alternative to a traditional 401(k). “We scoured the landscape for better 401(k) plans,” said then-CEO Bill Harris in the demo. “Finally a light went on– let’s build a better 401(k) plan. So we did and I’m delighted to launch here at Finovate, America’s Best 401(k).”

The plan offered solo 401(k)s for sole proprietors, custom 401(k)s for large and complex businesses, 403(p) plans for non-profits, defined benefits plans for tax benefits, and cash balance plans. The plan boasted fees of one half of one percent and access to the Personal Capital dashboard.

WealthSpark, the new offering, will help Personal Capital focus on its core competencies– financial analysis and wealth management planning– by relying on partnerships. Alight Solutions will tap into its existing customer base of 1,400 business clients to market WealthSpark, and AB will use its pre-existing portfolios for the investment side.

Founded in 2009, Personal Capital most recently presented at FinovateSpring 2014 where it debuted One Click Investment Portfolios. Earlier this spring, the company began offering socially responsible tools that make it easy for investors to put money into causes that matter to them. Personal Capital has raised $240 million.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Personal Capital Launches Socially Responsible Investing

Wealth tech company Personal Capital is making it easier for investors to put their money in causes that are important to them with the launch of its Socially Responsible Personal Strategy today.

The New York-based company is offering clients the ability to select a personalized socially responsible investment strategy with the same pricing structure as the rest of its offerings– a single, flat fee. “There has been a surge of investor interest in aligning their money with their values,” said Craig Birk, Executive Vice President of Portfolio Management at Personal Capital.

Personal Capital has teamed with Sustainalytics to screen equity holdings in the U.S. for three factors– environmental, social, and governance (ESG)– to find the best companies in each group. Just like Personal Capital’s core portfolio offerings, the new Socially Responsible Personal Strategy offers exposure to all six major liquid asset classes and individual stocks and uses Personal Capital’s Smart Weighting methodology to balance exposure to size, style, and sectors within the U.S. equity asset class.

In addition to the ESG factors, clients can use advanced customizations to exclude any stock or sector that they do not want to hold. In fact, 30% of Personal Capital portfolios do so. In total, the company manages more than $6.5 billion in assets and tracks over $500 billion for 1.6 million registered users. In the past 12 months, Personal Capital has nearly doubled its assets under management. At the end of last month, the company surpassed $6.5 billion in assets under management with an average client balance of more than $430,000.

Founded in 2009, Personal Capital debuted its One-Click Investment Proposals at FinovateSpring 2014. At FinDEVr Silicon Valley 2016, the company’s Ehsan Lavassani, Founding Engineer and Chief Engineering Officer, and Ravi Gundlapalli, Director of Frontend Engineering, gave a presentation titled, Data-Driven Account Opening. Last October, Personal Capital launched an education planning tool to help investors set aside money for the cost of college. Later that month, the company was named a Top 100 digital tech company in Colorado.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Personal Capital Launches Education Planner to Prepare You for College Costs

Wealth tech player Personal Capital has picked up on the student loan crisis. The company announced today it is adding a new feature to its dashboard to help families plan and prepare for the rising cost of higher education.

Personal Capital’s Education Planning Tool helps users understand costs of a specific college, compare in-state vs. out-of-state college costs, determine annual savings needs, and track their progress. The differentiating factor in Personal Capital’s new tool is that it allows for what-if scenarios and hypothetical income analyses. For example, users can determine how much more they would need to save if their student took a fifth year to graduate or if they sold their house, received inheritance money, or retired. Users can model multiple potential outcomes and compare the results to their current plan and see the possible effects on their overall portfolio and retirement readiness.

When starting a new education goal, users enter information about their student, planned education costs, and current savings. The planner accounts for inflation or deflation and calculates how much the user needs to save per month or per year to stay on track. Users can see the projections, edit their contribution amounts, and select specific schools to determine potential changes.

Founded in 2009, Personal Capital debuted its One-Click Investment Proposals at FinovateSpring 2014. At FinDEVr Silicon Valley 2016, the company’s Ehsan Lavassani, Founding Engineer & Chief Engineering Officer, and Ravi Gundlapalli, Director of Frontend Engineering, gave a presentation titled, Data-Driven Account Opening. Personal Capital was recently named in CB Insights’ Fintech 250 List. Earlier this year, the company extended its Series E funding round by $40 million, bringing its total capital to $215 million. In late August, Personal Capital reached $5 million in assets under management. Jay Shah is CEO.