Hybrid digital wealth management leader Personal Capital now has USD5 billion in assets under management (AUM), after gaining USD2 billion in AUM within the past year.
“When investors see a view of all of their financial accounts in one place through our Dashboard, they’re often surprised by their lack of diversification and how much they’re paying in fees to certain institutions,” says Jay Shah, CEO of Personal Capital. “For investors with complex financial lives or for those who are just too busy to manage their own investments, we take the time and worry out of building an investment strategy.”
Not only have Personal Capital’s total assets under management grown, but so has the firm’s average initial account size. This year alone, the average initial investment amount for new clients has grown 37 per cent, from USD289,000 to USD395,000. The company’s Private Client Service, which works with investors with USD1 million or more in investable assets, now comprises about 39 per cent percent of the company’s AUM.
As Personal Capital grows, the firm continues to launch new tools to help people meet their financial goals, including a Retirement Planner and Budgeting tool. The company recently announced an additional USD40 million of growth capital in an extension of its Series E round. Expansion plans include opening new offices in Dallas and Atlanta and extending the firm’s presence into New York, greater Los Angeles and Chicago while expanding existing operations in San Francisco and Denver.
“The key to our success is that we’ve given our customers the best combination of technology and access to human advice from day one,” said Shah. “We’re not a robo advisor that is just now adding a few people to offer live advice, and we’re not a 100-year-old bank struggling to build and bolt new technology onto their advisory force. We’ve been a true hybrid from the start, focusing on giving people tools and guidance that empower them to achieve their goals.”
Personal Capital’s financial advisory service includes a dashboard that shows the user’s entire financial life and tracks spending, saving and investing. The firm’s software offers comprehensive financial planning, including modules for goals such as retirement, marriage, home buying and college. Combining insightful tools with access to personalised advisors provides consumers with the leverage of technology and true advisory relationships.