New Investment in Personal Capital Takes Valuation to $500 Million

New Investment in Personal Capital Takes Valuation to $500 Million

PersonalCapital_homepage_May2016

Courtesy of a Series E round led by IGM Financial, digital wealth management giant Personal Capital picked up an investment of $50 million now, with another $25 million coming in 2017. The new capital takes the company’s valuation to $500 million.

Calling IGM Financial “the ideal investor,” Personal Capital CEO Bill Harris said his company would benefit from IGM Financial’s “expertise in financial advice and asset management.” Harris added that the partnership with IGM Financial would help his company meet the growing demand for Personal Capital’s digital wealth-management services.

PersonalCapital_stage_FS2014

Pictured (left to right): Personal Capital’s Jim Del Favero, chief product officer, and CFO Bill Harris demonstrated their platform’s One Click Investment Proposals at FinovateSpring 2014.

In the same statement, IGM President and CEO Jeff Carney praised Personal Capital’s veteran management. “We believe the financial advisory landscape will be enhanced by the type of service that Personal Capital provides,” Carney said. “We’re delighted to be backing the leader in digital wealth management.”

Personal Capital uses a hybrid approach of online technical tools and personalized advice to give average investors the same kind of service historically enjoyed by the high-net-worth clients. “Our approach allows people not only to manage their entire financial life through the mobile devices they carry in their pockets, but also to receive a level of personalized advice previously available only to the ultra-wealthy,” Harris explained. Personal Capital manages $2.4 billion in investments for more than a million investors.

In addition to management, Personal Capital offers investors free resources to help them manage their investments better. These solutions include a dashboard that lets investors see all their investment accounts in one place, as well as a Fee Analyzer and Investment Checkup. For fund management, Personal Capital charges a flat fee based on the percentage of assets managed, starting at 0.89% for the first million.

Founded in 2009 and headquartered in Redwood City, California, Personal Capital demonstrated its technology at FinovateSpring 2014 and presented at FinDEVr San Francisco 2015. The company surpassed $2 billion in assets under management in March, and lowered its investment minimum from $100,000 to $25,000 back in November.

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Personal Capital Exceeds $2 Billion AUM

Personal Capital Exceeds $2 Billion AUM

PersonalCapitalHomepage2016

This week, digital wealth management and advisory platform Personal Capital surpassed $2 billion in assets under management (AUM), up from $1.6 billion in November of last year.

In a press release, the San Francisco-based company reported that one third (just north of $660 million) of the total AUM comes from clients with more than $1 million in assets held at Personal Capital. Furthermore, half of Personal Capital’s one million clients come from traditional adviser relationships, while the other half stem from simpler, self-service brokerages.

On the Personal Capital platform, users aggregate an average of 15 different financial accounts. The company’s active members who track up to $100k in investable assets log into the platform on average of 12 times per month. Those who are tracking up to $1 million or more log in 17 times per month.

Read Personal Capital CEO Bill Harris’s announcement of the news on the company’s blog.

Personal Capital most recently presented to a crowd of developers at FinDEVr 2015 in San Francisco. The company launched One Click Investment Proposals at FinovateSpring 2014 in San Jose.


FinDEVr New York 2016 is coming up on March 29 & 30.Register today to save your seat.

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