Portfolio Company Addepar is a comprehensive software and data platform for professional wealth, investment, and asset management firms.

The platform offers tools for portfolio analysis, performance reporting, and data aggregation across various asset classes. Addepar charges fees for its services, which range from $50,000 to $1 million annually, depending on the volume of data and the level of services provided. This fee structure is tailored to accommodate the needs of large financial institutions, private banks, and registered investment advisors (RIAs).

Traction

Addepar has demonstrated significant growth and market traction. The platform manages over $5 trillion in assets, showcasing its extensive adoption by investment advisors, banks, and family offices. The company adds approximately $15 billion in new assets weekly and serves a global client base across 25 countries. This growth is supported by continuous product innovation, including the recent introduction of features like the visual ownership map and automated billing reconciliation.

Valuation

Addepar's valuation has surged over the years, reaching $2.17 billion after a recent funding round led by D1 Capital Partners. This valuation reflects the company's robust growth trajectory and strategic positioning in the fintech sector. The company has raised approximately $531.4 million from prominent investors such as 8VC, WestCap, and Valor Equity Partners.

Key Opportunities

Addepar's key opportunities lie in expanding its client base and enhancing its product offerings. The firm aims to leverage its data and technology to provide deeper insights and more efficient portfolio management solutions. Recent partnerships with Asset-Map, Orca, and WealthHub indicate a strategic move to integrate more comprehensive financial planning and compliance tools into its platform. Additionally, the company's focus on generative AI and innovative technologies positions it well to meet the evolving needs of its clients.

Prestigious Clientele

Addepar serves various high-profile clients in the financial sector, including private banks, family offices, and wealth management firms. Here are some notable clients:

HSBC Private Bank: HSBC U.S. Private Banking utilizes Addepar to enhance portfolio performance reporting for its high-net-worth and ultra-high-net-worth clients and family offices. The partnership leverages Addepar’s advanced analytics and multi-currency capabilities to improve reporting on private and alternative investments.
RBC Wealth Management: RBC Wealth Management-U.S. integrates Addepar’s platform to provide robust data aggregation and reporting capabilities for its 2,100 financial advisors managing $542 billion in client assets. This collaboration enhances the advisors' ability to handle complex portfolios and deliver detailed performance metrics to clients.
Focus Financial Partners: Amy DeTolla, Senior Vice President, uses Addepar’s platform to manage Connectus Wealth Advisers’ technology suite, enhancing digital client engagement and operational efficiency.
Geller Advisors: The firm uses Addepar to optimize financial planning and philanthropic efforts, leveraging the platform's comprehensive data analysis tools.
GenTrust: GenTrust employs Addepar for financial reporting, budgeting, and operations related to private investments, aiding their rapid growth and operational efficiency.
IEQ Capital: IEQ Capital’s Partner and COO, Dean Horwitz, utilizes Addepar’s platform for advanced data aggregation and investment analysis, which supports their detailed financial strategies.
Jordan Park: The firm integrates Addepar into its operations to support client reporting, performance analysis, and overall RIA and Trust Operations.

These partnerships underscore Addepar's capability to serve some of the most sophisticated financial institutions globally, providing them with powerful tools for data-driven investment management.

Latest News

In recent developments, Addepar appointed Bob Pisani as Chief Technology Officer to drive its global engineering initiatives and innovation. The company also received accolades, including being featured on the Forbes Fintech 50 list for the ninth consecutive year. Moreover, Addepar continues to roll out new features and integrations, enhancing its platform's capabilities and user experience.

Conclusion

Addepar stands out as a leader in the fintech space, offering a robust platform for wealth and asset management. With significant traction, a growing valuation, and continuous innovation, the company is well-positioned to capitalize on future opportunities in the financial sector.

Addepar stock bid-ask volume ratio

Apevue recently reported the bid-offer ratio for Addepar, showing an increasing interest in the name on the bid side and increasing trading volume on the stock.

Growth, depressed valuation, and trading volume will increase Addepar’s stock price before year-end. We should see the stock price return at least to the level of the last primary round in December 2021, which was $2.65 ($2.1B valuation).

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Disclaimer

Private companies carry inherent risks and may not be suitable for all investors. The information provided in this article is for informational purposes only and should not be construed as investment advice. Always conduct thorough research and seek professional financial guidance before making investment decisions.

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Addepar stock update, Q2 2024