(Bloomberg) — Acquired wealtha startup that advises doctors on their professional and personal finances has raised $200 million in new funding with plans to pursue acquisitions.
The financing was led by Summit Partners and Silversmith Capital Partners along with existing investors Juxtapose, Hudson Structured Capital Management and Breyer Capital, according to a statement reviewed by Bloomberg News. The company did not disclose its valuation on the round.
Earned Wealth, founded in 2021, provides financial planning, tax planning, wealth management and investment advice to medical professionals on a connected platform. According to data provider PitchBook, the company raised about $18 million in a 2023 funding round that valued it at roughly $40 million.
Chief Executive John Clendening said Earned Wealth aims to save doctors the hassle of finding and communicating with different financial advisers.
Physicians can use the platform to consult with wealth management experts about paying off medical school loans or navigating malpractice insurance. Earned Wealth has more than 3,000 clients and $2 billion in assets under management.
In addition to expanding its offerings, the firm is looking to acquire similar businesses that already focus on serving medical professionals, Clendening said.
There were about 1.2 million active physicians and dentists in the US, according to reports in 2022 by the American Medical Association and the American Dental Association.
“We've always thought that the financial infrastructure for physicians really lets physicians down,” said Jeff Crisan, a managing partner at Silversmith who has joined Earned Wealth's board.
In June, Earned Wealth acquired Thomas Doll, a California-based investment adviser to doctors and dentists. The acquisition allows Earned Wealth to expand its services in domestic tax planning and retirement programs, the company said. Thomas Doll operates as a subsidiary of Earned Wealth.
“Our goal is to become the one-stop shop, the only provider of financial services that a physician needs for their personal wealth, but also for their practice,” Clendening said.