Software Maker Addepar Valued at $2.17 Billion

Turbulent markets and a desire by investment advisers to know what could happen to their clients’ portfolios during the pandemic has spurred Addepar’s recent growth, said Chief Executive Eric Poirier. The Mountain View, Calif.-based company makes software for investment advisers, banks and family offices that aims to simplify the tracking of how investment portfolios perform across asset classes. Addepar currently tracks about $2.7 trillion of assets and has added an average $15 billion in assets a week since mid-2020.

“This has been a human trust business since the beginning of time, and having a human who is the financial professional use technology to serve their clients is a sea change,” said Mr. Poirier.

He declined to say if the company was profitable or to disclose its revenue but said Addepar was bringing on clients and assets at its fastest pace yet. The company says it thinks the total market demand for investible assets is more than $200 trillion globally. Clients include AllianceBernstein Holding LP, Morgan Stanley and Stifel Financial Corp. , whose investment arm previously invested in Addepar.

Mr. Lonsdale, who ran Addepar for its first three years and now is chairman of its board, described it as “an operating system for finance.” He said he sees users turning to Addepar because the software aggregates large amounts of information needed to help them make decisions about money.

Mr. Lonsdale also said Addepar could have an ecosystem of applications built around its software in several years. In addition to simplified performance reporting, Addepar lets clients view net worth at a glance and last year rolled out a feature called Marketplace that provides information about investment products such as hedge funds, private-equity funds and shares in private companies.

Mr. Lonsdale said building out the technology of the firm had taken longer than expected.

“It turns out there are a lot of hard problems to solve in wealth management” such as the distribution of data across thousands of custodians and fund administrators, he said.

Addepar plans to use the funding to scale up its sales force globally, particularly in Europe, and continue to invest in research and development. Roughly 90% of its client base is in the U.S. currently, Mr. Poirier said.

D1 will take a board observer role. D1 principal Prateek Bhide said Addepar has an opportunity to grow rapidly. The hedge-fund firm has employed a hybrid approach of investing in both public and private companies since its founding in 2018.

Addepar board member David Obrand became president of the company in March.

Write to Juliet Chung at [email protected]