Riskalyze draws $20 million in capital for robo platform and other adviser products

FTV Capital takes small stake and board seat in risk software provider

Oct 31, 2016 @ 6:45 am

By Liz Skinner

Risk alignment software firm Riskalyze has attracted $20 million in its first-ever institutional capital infusion that will go towards expanding its Autopilot robo platform for advisers and other products, the company said on Monday.

The equity growth investment gives fintech backer FTV Capital a “very minority” stake in the company and Brad Bernstein, managing partner at FTV Capital, will take one of five seats on the Riskalyze board of directors, said Aaron Klein, chief executive at Riskalyze.

“We think we have just scratched the surface on the innovation we can do for advisers,” Mr. Klein said. “We decided to talk with a few prospective investors and raise the capital we need to fuel the next generation of innovation and growth.”

(More: Riskalyze's Aaron Klein reveals how he grew his company)

Financial planners use Riskalyze to assign risk scores to clients to help advisers recommend an appropriate investment strategy. About 15,000 people are using the Riskalyze platform to attain their “risk number,” according to the Sacramento-based firm.

The Labor Department's rule requiring financial advisers to provide retirement recommendations that are in the best interest of their clients has increased demand for the Riskalyze technology, Mr. Klein said.

Earlier this year, Riskalyze introduced its Autopilot digital advice solution for advisory firms, which advisers can imbue with their own brand. The platform allows clients to open new accounts, e-sign documents and sync their outside assets through the advisory firm website.

The firm isn't making public how many firms are using Autopilot at this point to make their businesses more efficient and give advisers more time to spend figuring out what's in the best interest of clients, Mr. Klein said.

(More: How fintech aims to make DOL fiduciary rule manageable)

“When advisers are manually executing trades and handling paperwork, that's not being a fiduciary,” Mr. Klein said.

FTV Capital has raised more than $2.7 billion, investing in mostly financial technology companies since 1998 and its past investments include managed account provider Financial Engines Inc.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

Advisers beware: tax law has unintended consequences

Commission accounts could be preferable for some clients, and advisers could be incentivized to move from employee broker-dealers to independent channels.

Recommended Video

Path to growth

Latest news & opinion

Tax reform: 7 essential strategies for financial advisers

While advisers face the difficult task of analyzing the law's impact, they will also have a significant opportunity to prove their value by implementing money-saving strategies for clients as well as their own businesses.

Tax law: Everything advisers need to know about the pass-through provision

The provision is tricky, but could provide advisers and business-owner clients with sizable tax savings.

Bill requiring fiduciary disclosure reintroduced in New Jersey

Measures would obligate financial advisers to tell clients they do not have to act in their best interests.

Merrill Lynch to let advisers text with clients

Texting has been a popular mode of communication for years, but in the past the firm's regulations have prevented advisers from using it.

Bear market for bonds has arrived, Gross says

10-year Treasury rate's move above 2.5% confirms outlook for fixed income, legendary bond manager says.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print