News, Vision & Voice for the Advisory Community


Private equity firms value a $250 million RIA at $50 million based on killer business model that includes 'grid payouts,' classic RIA fees and a startup robo-level of attention to software

Bessemer, MassMutual and others put $15-million of seed capital into Farther, which will need to grow AUM 10-fold 'every few years' to justify the optimistic valuation.

Author Lisa Shidler August 19, 2022 at 2:39 AM
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Taylor Matthews: The way we started differently is we started with code.

Jeff Spears

Jeff Spears

August 19, 2022 — 11:01 AM
Finally realistic vacation
Stephen Chen

Stephen Chen

August 19, 2022 — 4:30 PM
Glad to see that more smart people are coming to provide better technology in this space. At a high level I think basing your business model on a 1% AUM fee model is a risky proposition. Our bet is that the future looks like: 1) Lots of people accessing planning via a hybrid digital first model - with access to humans on demand at on flat fee basis that is dramatically lower. Based on a a fully aligned and independent business model. 2) A smaller percent of the market accessing white glove services at a much higher price point. If you put firms on a spectrum I think it would look like this 1) Tech first/hybrid/lower fees - ex. NewRetirement (200,000 plans built with $200 Billion and thousands of subscribers managing $15 Billion - just on our D2C model - the smaller part of our business) https://www.newretirement.com/retirement/pricing/ 2) Well funded technology + flat fee (d2C) - Facet 3) Well funded technology for Advisors (B2B2C) - Vise, Altruist 4) Well funded technology + 1% - Farther, Personal Capital (sold for $1B after $300M of VC) Chase announced a Remote Advice Channel for the mass affluent and Empower is bringing Personal Capital to the workplace, so more competition is coming.

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