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.