Facet Wealth, a digital wealth management platform with an intriguing twist, has raised $33 million in Series A funding from investment firm Warburg Pincus and venture capital firm Slow Ventures.
The twist? Facet Wealth, which has $23 million in assets under management, acquires smaller clients from RIAs but promises to offer them back if client assets breach $1 million, Financial Planning reports.
“We want to be seen as a partner to the industry, not as a competitor,” Anders Jones, CEO and co-founder of Facet Wealth, is quoted saying.
The company’s business model shows how the technology that enabled the development of robo-advisors is being adapted to serve specific market niches. Baltimore-based Facet Wealth is targeting clients with assets from $100,000 to $1 million. Its average client is 55, transitioning to retirement and has $350,000 in assets.
“There is a gap in the market,” Jones is quoted saying. “These small clients have more money and more complex lives than what a purely robo advisor can help with, but not enough assets to attract the high-net-worth advisor.”
Each Facet Wealth client works with a dedicated CFP and pays according to services rendered. CEO Jones says clients pay an average of 41 basis points.
—Ross Snel
