Addepar

Addepar, Inc. is an American wealth management platform for registered investment advisors, specializing in data aggregation, analytics, and portfolio reporting.[3]

Addepar, Inc.
TypePrivate
IndustryFinancial technology
FoundedSeptember 2009 (2009-09)
Founders
  • Joe Lonsdale
  • Jason Mirra
Headquarters
Mountain View, California
,
United States
Number of locations
6 (2023)
Area served
Worldwide
Key people
Joe Lonsdale (Chairman)
Eric Poirier (CEO)[1]
ProductsAddepar Platform
Open API
Services
Number of employees
800[2] (2023)
Websiteaddepar.com

Origin

In 2004, Peter Thiel founded Palantir Technologies along with several others, including Joe Lonsdale. In 2009, Lonsdale stopped working full-time at Palantir to launch Addepar with Jason Mirra, another Palantir employee.[4][5] In 2012, Addepar expanded its target clients to include registered investment advisers (RIAs) and initiated a sales and marketing effort to attract larger clients.[4] In 2013, Addepar focused on expanding risk analytics and their client portal.[6]

Management transition

In 2013, Addepar hired a head of sales from Advent (Black Diamond).[7] During 2013, Addepar's primary competitors Black Diamond, Tamarac and Orion "pulled away in the battle for RIA market share, with each of the brands adding about 50% to their asset administration totals".[7] In 2013, Addepar sought to transition out of start-up mode, replacing Lonsdale with new CEO Eric Poirier previously of Palantir and hiring a COO to start building out the company's management.[8]

Funding and expansion

In 2017, Addepar received a $140 million round of funding from Valor Equity Partners.[9] The same year, Addepar partnered with Morgan Stanley, providing software that consolidated information and tailored reporting about the assets of high net-worth Morgan Stanley clients.[10]

In May 2017, Addepar acquired AltX, a machine learning platform aimed at alternative investments.[11]

In 2019, Addepar hired six new executives to the company's team and launched a mobile app for its portfolio management software.[12][13]

Products and services

Addepar's platform provides analytics and performance analysis of portfolios and market data with software for managing high-net-worth and ultra-high-net-worth clients.[14]

Its technology involves a mixture of proprietary and open-source software. The web frontend runs on Node.js and is developed with Ember, Lodash, QUnit, and D3.[15] Addepar's backend services run primarily on Java, with Jetty and Jersey.[15]

Platform

The first algorithms for the Addepar platform were collaborated on by early Palantir employees.[3]

In 2012, Fortune described Addepar as a service for connecting family offices and endowments to their respective investment managers and third parties managing their assets.[16] Addepar software facilitates both visualizing an investment portfolio's exposures at the individual asset class and also tabulating the portfolio's total value according to real time value of the assets under management.[17] The Wall Street Journal described the Addepar platform as providing investment advisors "a dashboard to track the performance of many types of asset classes in one place." In April 2015, Addepar released a fully browser-based version of the platform.[18]

Open API

In September 2016, Salesforce.com announced their partnership with Addepar for Salesforce's Wave Financial Services Cloud for financial advisers, making it easier to see across asset classes and produce a single visual for their clients.[19] One month later, Addepar released their Open API to provide "a programmatic solution to tie Addepar’s data and calculations into a multitude of other products and systems."[19]

Criticism and controversy

Housing benefits program

Addepar, Palantir, Facebook, and Salesforce.com have been criticized for their programs to pay employees to live closer to their headquarters to encourage employees to spend more time at work; Facebook offered a one-time payment of $10,000 and Addepar offered $300 per month.[20] John Liotti, chief executive officer of East Palo Alto community advocacy group Able Works expressed concern that this will contribute to gentrification of neighborhoods.[20]

References
  1. Feintzeig, Rachel (15 June 2016). "Male CEOs Detail Their Work-Life Rules". No. Eastern edition. New York, N.Y., United States: Wall Street Journal. Dow Jones & Company Inc. p. B1. Retrieved 21 December 2016.
  2. Beltran, Luisa (17 January 2023). "Addepar, a wealth management startup launched by the co-founder of Palantir, is the latest fintech to cut jobs". Fortune.
  3. "How Addepar built an ecosystem around the ultra-high net worth investment community with CEO Eric Poirier". Tearsheet. Retrieved 26 November 2019.
  4. Vance, Ashlee (18 October 2012). "Addepar's Software for the Super-Rich". United States: Bloomberg Businessweek. Bloomberg L.P. Retrieved 30 January 2017.
  5. Hardy, Quentin (3 August 2014). "Wealth Managers Enlist Spy Tools to Map Portfolios". The New York Times.
  6. Hampton, Dina (8 March 2013). "10 Most Influential RIA Figures Going Into 2013 and How They're Reshaping the Industry, Part 1". United States: RIABiz. RIABiz LLC. Retrieved 13 February 2017.
  7. O'Mara, Kelly (23 March 2014). "The Face of Addepar Leaves the Company Amid Intrigue About Just Where It Stands With the RIA Market". United States: RIABiz. RIABiz LLC. Retrieved 21 February 2017.
  8. "Addepar Valued at $2.17 Billion as Investors Bet on Wealth-Management Tech". Retrieved 17 June 2021.
  9. "Addepar CEO says investors want better returns, fear volatility". Reuters. Retrieved 26 November 2019.
  10. "Morgan Stanley partners with Addepar to see more of clients' wealth". Reuters. Retrieved 26 November 2019.
  11. "Addepar acquires alt investment platform". Financial Planning. 2017-05-17. Retrieved 2020-03-26.
  12. "What's behind Addepar's latest executive hires". Financial Planning. Retrieved 26 November 2019.
  13. "Two fintech firms providing tools for uber wealthy clients". InvestmentNews. Retrieved 26 November 2019.
  14. "Fidelity boosts tech offerings for advisors". Financial Planning. Retrieved 26 November 2019.
  15. Tylwalk, John (2017-10-23). "Our Tech Stack". Medium. Retrieved 2020-11-14.
  16. Lashinsky, Adam (11 September 2012). "Money management, Silicon Valley-style". United States: Fortune. Time Inc. Retrieved 27 December 2016.
  17. Collins, Margaret (7 August 2015). "A How-To Guide for Opening Your Own Wealth Management Firm". No. September. BloombergMarkets. Bloomberg L.P. p. 14. Retrieved 13 January 2017.
  18. "Review: Nevin Freeman pops the Addepar hood to see what $50 million of coding can do for RIA software". RIABiz. Retrieved 26 November 2019.
  19. Hobey, Erin (26 October 2016). "Addepar: With $500B in Assets & New Salesforce Partnership, Launches Open API". United States: Crowdfund Insider. Crowded Media Group. Retrieved 29 December 2016.
  20. Oran, Olivia (17 December 2015). "Facebook will give employees $10,000 if they move within 10 miles of its headquarters". United States: Business Insider. Business Insider Inc. Retrieved 25 January 2017.
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