NextCapital raises $16 million as its founder goes where Financial Engines' 401(k) robo strategy didn't
Betting giant asset managers will carry the day, recovering co-founder of Personal Capital Rob Foregger seeks firms like Russell Investments, Alliance Bernstein as VC investors and as enterprise clients
Remember when brick and mortar retailers worried that online retailers would put them out of business? What happened is brick and mortar retailers just used online customers to boost their existing business. Large financial services firms with massive market presence will out robo the nascent .robo with no market presence. Importantly robos will actually enhance the technical competency of established firms in measurable ways to the consumer’s benefit. Rather than being paralyzed with fiduciary liability, robos help the industry embrace it and consumers win in a big way.
I do remember when brick & mortar retailers were worried that online retailers would put them out of business, Stephen. And last time I checked Amazon was pretty close to doing just that for Borders and Barnes & Noble, no?
Tying your fortunes to a bunch of second-tier, old-world firms is downright silly – good luck Next Capital, you’ll need it!
With fears rising that robo-advisors can disrupt $2-trillion target date fund universe, NextCapital raises fresh $30 million and wins five big customers, but can its software spur widespread TDF adoption?
TDFs are cash cows and asset magnets but also dumb robots in an era of smarter ones and the Chicago-based outsourcer is promising answers -- most recently to Franklin Templeton
September 22, 2020 at 8:59 PM
Edelman Financial Engines new CEO will face challenges after AUM plummets $50 billion (since start of 2022) and DOL throws wrench in its business model, complicating efforts to convert robo-advised 401(k) assets to an 'Edelman' RIA
CEO Jay Shah must chart a new course after the 2018 merger of the radio superstar RIA and the 401(k) robo-advisor fails to yield invisioned growth.
July 11, 2023 at 2:46 AM
With IPO clock at 10-years and ticking, Personal Capital makes two big, out-of-character moves to go upmarket and downmarket
With $9 billion in assets, the Redwood City-based national RIA hired the ex-Virgin America CMO Porter Gale to make one brand investors associates with both the freebie tools and the full-priced financial advice its advisors provide mostly from call centers
March 22, 2019 at 7:55 PM
Top Executive: Jennifer Tice