Altruist has raised $169 million in a Series E round that values the RIA custodian at $1.5 billion, according to the firm. The funding round was led by ICONIQ Growth, with participation from Granite Capital Management. Existing investors Adams Street Partners and Sound Ventures also participated.
Yoonkee Sull, general partner at ICONIQ Growth, will join Altruist's board of directors as a result.
This follows a About $112 million in Series D funding announced last year and brings Altruist's total funding to over $450 million.
With more than 3,700 advisors and 2,500 RIA firms on its platform, Altruist is now the third-largest custodian, behind Schwab and Fidelity, by number of RIA client firms, though not by assets under management. In a statement, Altruist said it has tripled its assets for two consecutive years and increased its revenue by 550% in 2023.
“It's rare to see a new company in the custodian space nail down the basics while building a significant customer base in a market dominated by legacy financial institutions,” Sull said in a statement. “Jason Wenk is a serial entrepreneur who has driven the category forward for nearly two decades, and with Altruist, he has built one of the most trusted names in RIAs today.”
Last March, Altruist launched its own self-cleaning platform, Altruistic Cleaning, the final step to becoming a full-service caretaker. Just a few weeks later, it announced plans to acquire SSGadding more than 1,600 advisors to its platform and giving Altruist approximately 10% market share of total RIA firms.
In August, the company announced a move in a hybrid work environment, with about 90% of its employees operating out of offices in Los Angeles, Dallas and New Jersey, and about 10% staying entirely virtual. To accommodate the move, the company said it will double its office space in Culver City, Calif., and relocate a large number of staff to those central cities. It will also focus on staffing those offices.
A few weeks ago, Altruist introduced an updated fee plan in response to feedback from its advisors. The new price is at or below the old guardians, the company said. And in March the firm announced the availability of Altruist Cashits own cash management offering for advisers and end clients.
Last year, Altruist eliminated the wallet accounting fee of $1 per account per month for advisors who deal with the firm.