Two digitally native wealth management firms are merging into a digital family office serving entrepreneurs, professionals and retirees.
Compound, a financial and tax advisory service for technology executives, is joining Alternativ Wealth, a digital registered investment advisor, to form Compound Planning. The new entity manages $1.2 billion in assets and employs more than 50 people across the U.S.
Both companies are backed by venture capital. Compound has raised a total of $37 million in funding, including a $25 million round of Series B funding in November. Alternativ closed a $10 million financing round in June.
Compound’s financial advisors will get access to new resources to provided dedicated financial advice, tax services, alternative investments, concierge operations and a digital dashboard interface.
The goal is to create what Compound founder and former CEO Jordan Gonen calls “the Apple of wealth management.”
“I started Compound to be a one-stop-shop for tech professionals to manage their personal wealth, so they could spend less time worrying about their finances and more time on what matters most in their lives,” Gonen said in a statement.
Christian Haigh, formerly the CEO of Alternativ, will take over as CEO of the combined firm.
“This merger allows us to provide more support for our financial advisors, and most importantly better serve our clients,” Haigh wrote in a company blog post. “We are now positioned better than ever to deliver a client-centric financial, tax, and investment planning experience.”
Gonen will move into a “strategic role” supporting Haigh through the integration of the two firms and driving future strategy, according to a company spokesperson.
Plus, a $400 million Commonwealth team departs to launch an independent family-run RIA in the East Bay area.
The collaboration will focus initially on strategies within collective investment trusts in DC plans, with plans to expand to other retirement-focused private investment solutions.
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