Addepar added six new executive hires, reflecting the performance reporting provider’s healthy growth in recent months but also signaling its mounting challenges.
The firm has seen significant development in the past year and has added 30% in net new client assets to its platform since April, according to a spokeswoman. Sustaining that growth will become an increasing challenge, especially in a volatile market, says David Lessing, the firm’s incoming chief revenue officer.
“We’re experiencing substantial demand from our enterprise clients,” Lessing says. The Mountain View, California-based firm serves 400 institutions with $1.3 trillion in client assets on the platform, according to a spokeswoman.
The Addepar platform links portfolios across asset classes, including alternatives and private assets, and offers capabilities to analyze data in multi-currency scenarios. Almost 40% of advisors are using alternative investments like REITs, private investments, hedge funds, private equity and real estate, according to a
In addition to Lessing, the firm added several other key executives including Stephen Snyder as chief financial officer, Dan Bayer as senior vice president of services, Sally Buchanan as vice president of people and operations and Natalie Sunderland as vice president of marketing. Laurence Tosi will join the company’s board.
The incoming executives come from a diverse background of companies including leading financial institutions Morgan Stanley and Merrill Lynch, the videogame giant PlayStation and online home rental site Airbnb.
In a statement, Addepar founder Joe Lonsdale said the new hires will usher in the “next phase of initiatives.” The firm is expanding its offerings to cater to more than just advisors with UHNW clients, Lessing said.
“From family offices to RIAs to financial institutions where advisors serve a range of clients, including mass affluent, that’s where we have worked over the last couple of years building scale,” Lessing said. “It’s not just advisors with a small number of HNW clients.”
The firm raised $140 million in funding from sources including SpaceX backer Valor Equity Partners.
The key to bringing on new enterprise clients is providing a more complete client portfolio using data that’s structured and secure, Lessing says.
“It's not only about identifying held-away assets, but which types of clients are holding those outside assets, and about identifying a range of opportunities to provide better advice,” Lessing said. “Advisors are essentially only seeing a slice of a client’s assets."
Addepar’s current clients include, according to its website, independent financial advisors, family offices and large financial institutions such as Dynasty Financial Partners and Tiedemann Advisors.
