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For decades, wealth managers have had key questions that were surprisingly difficult to answer. What do I own? Where do I own it? What risks am I exposed to? At Addepar, our clients are at the center of everything we do. We’ve been laser-focused since our 2009 founding on bringing data, technology and people together to provide answers and optimize how capital is put to work.
But for RIAs and family office managers, answering these questions is often just the beginning. They also want and need to answer forward-looking questions, such as: What could my investment portfolio look like at a specific point in the future? How do we get there from here? What is the best path to take in order to get from point A to point B?
Real Capital Innovation, better known as RCI, was founded in 2017 to answer these questions. RCI’s sophisticated technology was designed to integrate with Addepar’s platform, bringing in an investor’s portfolio holdings — including illiquid assets like private equity and real estate, and also complex ownership structures — and then enabling advisors to define data inputs and simulate investments to more optimally achieve goals and objectives. Clients are also able to choose among various capital-market assumptions to test hypothetical performance across different market scenarios.
At Addepar, we serve hundreds of clients and thousands of wealth managers. We make a point to listen closely to what our clients need in order to achieve their goals. Our team feels a deep and shared responsibility for setting a higher standard with our platform. As a demonstration of this commitment, we’re excited to announce that Addepar has acquired RCI so that we can directly offer our clients these powerful tools to model and analyze portfolios in a forward-looking way and empower them to continue making more confident and informed investment decisions.
Combining two great teams
This acquisition brings together two world-class teams with deep roots in technology- and data-fueled innovation and a passion for and understanding of financial markets and investment management. The entire RCI team, including co-founders Dr. Ashby Monk and Kanishk Parashar, will join team Addepar and continue driving the vision and execution in building these innovative investment decision-making tools.
Our two companies were built on similar philosophies and development approaches, resulting in a like-mindedness, and a natural team and chemistry fit. We’re eager to join forces and passionate about maximizing the value and impact we can bring to our family office and RIA clients to help them better invest in the future.
Enhancing value for clients
Addepar and RCI have each been exceptionally client-focused from the start, and we’re particularly excited about this acquisition to further deepen Addepar’s value proposition - both to our existing and new clients. Firms will be able to intuitively perform liquidity modeling and scenario analyses — forecasting goals and objectives, and mapping a path that leads to these goals. As we’ve seen in the last year, these capabilities are especially valuable in uncertain times with significant market volatility.
Addepar’s clients manage more than $2 Trillion of assets on our platform, and more than 30% are in alternatives and private market assets. Due to the nature of larger illiquid investments that lack transparency, we’ve seen a strong appetite from existing clients to take advantage of our strategic relationship with RCI.
Addepar and RCI are making meaningful technology- and data-driven innovations to help wealth managers continue to navigate an ever-changing financial landscape and maximize the impact of the more than $120 trillion in investable assets globally.
I’m incredibly energized by the community (virtually) around me and look forward to kicking off 2021, and collectively aiming even higher together.