Robo advice firm reaches $5bn of assets after strong growth and demand from the rich

By Daniel Lanyon on Monday 4 September 2017

Savings and Investment

Another US firm aiming to disrupt the traditional wealth management market is on tear.


Hybrid digital wealth managemer Personal Capital now has $5 billion in assets under management (AUM), after gaining $2 billion in AUM within the past year.

The Silicon Valley based firm is one of an emerging group of digital wealth managers with a high level of automation as well as the personal attention from registered financial advisors.

“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.” said 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 $289,000 to $395,000. The company’s Private Client Service, which works with investors with $1m or more in investable assets, now comprises about 39 per cent per cent of the company’s AUM.

As Personal Capital has launched a variety of new tools over the past year including a Retirement Planner and Budgeting tool. The company recently announced an additional $40m of growth capital in an extension of its Series E round.

“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,” Shah added.

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