NextCapital gets $30 million more in funding for its digital advice platforms

John Hancock, Transamerica, State Street and Russell Investments have deals with the software provider.

NextCapital, a technology vendor that builds customized digital advice platforms for large financial institutions, announced Thursday morning the completion of a $30 million round of Series C funding.

The company currently offers what it calls a “full-stack digital advice solution,” including for portfolio tracking, planning, savings advice and portfolio management, that is built to the unique specifications of prominent retirement plan and asset management firms.

NextCapital co-founder Rob Foregger said the infusion of capital will be used to bring new functionality to the platform and open the technology to new geographic markets. Previously, NextCapital had success digitizing retirement plans and rollovers, but Mr. Foregger said the company also wants to penetrate the advisory market.

Retirement Plans

“There is more need and demand for holistic retirement decumulation planning,” Mr. Foregger said. He wants to take the technology a bit further to let large retirement firms “do managed accounts across a multi-goal plan.”

In January 2017, John Hancock Retirement Plan Services said it would use NextCapital’s platform to offer automated plans and rollovers. The company also has deals with Transamerica, State Street Global Advisors and Russell Investments.

“Retirement and asset management firms are selecting NextCapital as a technology partner because of its ability to provide a truly differentiated digital advice solution,” said Alois Pirker, research director of Aite Group, in NextCapital’s press release. “More specifically, large institutions want to utilize their own proprietary investment methodology, have full control of user experience, integrate to multiple 401(k) record keeping systems, and often, support multiple business channels.”

VC Sources
Venture capital firm Oak HC/FT led the funding round, and co-founder and general partner Patricia Kemp will join NextCapital’s board of directors.

“The $15 trillion U.S. retirement savings market is going through seismic change — from a regulatory, technology and consumer perspective,” Ms. Kemp said.

Existing shareholders Manulife Financial, Transamerica Ventures, Vermont Seed Capital Fund and Route 66 Ventures also participated.