Nick Beim

Thoughts on the Economics of Innovation

What the $50 Million Altruist Funding Means for RIA Custodians

Altruist’s latest $50 million funding round could signal an opportunity for the Los Angeles-based fintech to disrupt the RIA custodial space. Altruist announced its funding round on Wednesday led by global venture capital and private equity firm Insight Partners, with investments from Series A investor Venrock, as well as asset management giant Vanguard. The funding follows Altruist snagging former Vanguard CEO William McNabb to join its advisory board, drawing new attention to the fintech and its potential to break up the RIA custodial oligopoly with the support of an asset manager. “Altruist managing to nab McNabb is the strongest signal yet that potential disruption of the RIA custodial space isn’t just something that some RIAs want to see as a form of greater competition and more choices,” Michael Kitces said in his InvestmentNews adviser tech blog update in February.