Vestwell Raises $8 Million in Series A Funding led by F-Prime Capital Partners

As Vestwell’s Digital Retirement Platform Experiences Rapid Growth, Funding will be used for Market Expansion and Further Development of the Platform’s Technology


NEW YORK, Oct. 2, 2017 /PRNewswire/ —  Vestwell, the industry’s first and only fiduciary-backed retirement platform for the financial advisor community, today announced $8 million in Series A Funding led by F-Prime Capital Partners, the venture capital group associated with the parent company of Fidelity Investments, with participation from Primary Venture Partners, FinTech Collective, and Commerce Ventures. Launched in late 2016, Vestwell received $4.5 million in its initial Series Seed of financing in September 2016.

Vestwell has grown rapidly this year with an exceptional market reception. As advisors look to better engage with their clients, while scaling their practice, Vestwell’s platform can be leveraged to facilitate every aspect of the advisor, company and employee’s needs. The unbundled, turnkey 401(k) and 403(b) platform becomes an extension of the financial services firm, helping to reshape how plan sponsors and employees are serviced. The multi-recordkeeper, multi-custodial technology can also incorporate 3(21), 3(38) and 3(16) investment and administrative services.

So far this year, the company has signed over 50 registered investment advisor (RIAs) firms, as well as independent broker-dealers, asset managers, and bank/trust custodians, with plans to onboard several thousand advisors this year.  The funding will be used to grow the team while further enhancing the technology.

In conjunction with this funding news, Vestwell also announces Ben Malka as a member to the Board of Directors. Malka is a partner at F-Prime Capital and also serves as co-chairman of the Financial Services Venture Capital Association.

“We’re excited to increase our reach in the financial advice industry and continue to develop better technology for our clients,” said Aaron Schumm, Founder and CEO of Vestwell. “Vestwell was founded to provide advisors and plan sponsors with an affordable, compliant, and easy-to-use retirement planning solution to help close the retirement savings gap in America, and F-Prime has supported that mission since our inception. This announcement, combined with the outstanding leadership that Ben brings to the Board of Directors, is instrumental to Vestwell’s success.”

“Vestwell’s white-labeled platform provides financial advisors with the ease of compliance and automation while maintaining the human interaction that makes their businesses succeed,” said Malka. “By giving advisors and plan sponsors access to low-cost plan options, Vestwell is providing employees across the country with the tools and plans that can help them to retire happily.”

Vestwell is the industry’s first and only fiduciary-backed retirement platform for the financial advisor community. For more information about Vestwell or to inquire about how financial advisors can leverage the platform, please visit: http://www.vestwell.com/.

About Vestwell Holdings, Inc.

Vestwell Advisors, LLC is a SEC registered investment advisor, a wholly owned subsidiary of Vestwell Holdings, Inc., specializing in 401(k), 403(b) and other defined contribution and benefit retirement investment management services. Built by an experienced team led by CEO Aaron Schumm, Vestwell assumes 3(38) investment management and ERISA3(16) fiduciary responsibility on the behalf of advisors and their plan sponsor clients. Learn more at Vestwell.com and on Twitter @Vestwell.

This is not an offer, solicitation, or advice to buy or sell securities in jurisdictions where Vestwell Advisors is not registered. An investor should consider investment objectives, risks and expenses before investing. More information is available within Vestwell Advisors’ ADV.  There are risks involved with investing. Investors should consider all of their assets, income and investments. Portfolios are subject to change. All opinions and results included in this publication constitute Vestwell Advisors’ judgment as of the date of this publication and are subject to change without notice.

Source: Vestwell Holdings, Inc.

Related Links

http://www.vestwell.com

Vestwell Featured on ThinkAdvisor

Our CEO and Founder, Aaron Schumm, explains to ThinkAdvisor how Vestwell plans to lower costs for participants by streamlining plan design and implementation. Click here to read the article.

“When an advisor comes in [to a company] to talk about a retirement plan, it’s usually a brown bag lunch scenario, where the advisor tells the company ‘here’s everything you can do but I can’t tell you what to do,” said Aaron Schumm, CEO of Vestwell, a new platform that helps advisors evolve their business to suit the changing world of retirement plan investing. “That can be intimidating and confusing, and more importantly, can prove to be a costly process for a business.”

“Because we’re taking care of the headaches that come with setting up a retirement plan – the cost, the fiduciary aspect, the investment side – it means that employees can ultimately save more,” he said. “By becoming the only interface that an advisor or plan sponsor needs to design a plan, implement it and invest that plan on [employees] behalf, we’re saving everyone a lot of time, expense and headache.”

Aaron Schumm interviewed on WealthManagement.com


Vestwell’s CEO, Aaron Schumm, was recently interviewed for an article about Vestwell at WealthManagement.com. Preview the article below or read the full story on their site.

“When Josh Brown, the CEO of Ritholtz Wealth Management and author of the popular finance blog, “The Reformed Broker,” hosted the 2017 Benzinga fintech awards, he name-dropped Vestwell as a company with the potential to radically change the wealth management industry.

That’s right, Vestwell, a company looking to make it easier and more cost-effective for registered investment advisors to design, sell and administer 401(k) and 403(b) plans using digital automation. What exactly does Brown find so revolutionary?

“I get most excited about fintech when it solves a serious pain point for a practitioner like myself. It’s not like I’m saying they’re doing something that no one has ever done before,” Brown told WealthManagement.com. He added that his firm got started in retirement plan space a year ago, and is considering adopting Vestwell for some of their clients. But Brown thinks the user experience of Vestwell is such an upgrade over incumbent platforms that it could attract swahs of new advisors to the $6.8 trillion dollar defined contribution market currently dominated by large financial institutions.”

Read More at WealthManagement.com

Vestwell on WealthManagement.com

Aaron was recently inverviewed for an article on WealthManagement.com

Aaron Schumm, CEO of New York City-based Vestwell, believes retirement plans are an underserved market from a fintech perspective. He describes his company’s mission as “breaking down the friction points” that can develop in advisors’ work with plan sponsors. Those friction points include legal liabilities, costs and the cumbersome nature of designing and monitoring a plan, he says.

Besides working with 401(K)s and 403(b)s, advisors using Vestwell’s platform can propose, implement and manage custom cash balance plans and custom profit-sharing. Plan proposals start with advisors inputting details they’ve received from the plan sponsor, including the plan adoption agreement, employee census and other information from the sponsor’s Form 5500. The goal is to “design a plan that ensures all protected plan provisions are covered on their behalf, and will incorporate the services that will either meet or exceed what’s being offered today,” Schumm explains. The proposal includes a side-by-side comparison of the current and proposed plans; advisors can send the proposal through Vestwell’s platform and use online conferencing to discuss it. Vestwell’s target market is small- to medium-sized plans, says Schumm, although that audience could expand to the $25 million-plus plan size market as the firm adds features and functions to its service.

Read more

Vestwell is a Finalist for the Benzinga Global Fintech Award

Vestwell is excited to be a finalist for the Benzinga Global Fintech Award. The Benzinga Fintech Awards were created to recognize innovation and excellence throughout the capital markets industry. The Benzinga gala and award will take place on May 11th in New York city. Come celebrate with us and register for the event. Use code [FOCUS] to save $300 off the registration fee.

Zainab Noorali named Client Success Manager

NEW YORK, NY, March 27, 2017 – Vestwell announced today that Zainab Noorali joined the company as Client Success Manager. In this role, she is responsible for customer portfolio development as well as retention and expansion with the firm’s top advisors and plan sponsor clients. In addition, Noorali is tasked with cross-company collaboration with various departments, ranging from sales, marketing, product development, technology, and operations.

“The retirement industry is ready for a change,” said Noorali. “Vestwell is disrupting the market with an innovative platform and I couldn’t be more excited to join the team and be a part of the journey.”

Prior to joining Vestwell, Noorali served as retirement product sales strategy manager at Empower Retirement and oversaw the participant experience while building relationships with plan sponsors and advisors. She started her career at JP Morgan as an asset management analyst, and most recently served as financial education consultant where she trained employees on product offerings for institutional clients.

“With over 10 years’ experience in the financial services and retirement industry, we’re excited to welcome Zainab to the Vestwell family,” said Aaron Schumm, CEO and founder of Vestwell. “As our company continues to rapidly develop and expand, Zainab’s experience exemplifies the type of talent that we’re recruiting to service our clients.”

Vestwell is the industry’s first and only fiduciary, white-label retirement platform for the financial advisor community and beyond. For more information about Vestwell or to inquire about how your RIA can leverage the platform, please visit: http://www.vestwell.com/.

About Vestwell Holdings, Inc.

Vestwell Advisors, LLC, a 3(38) and 3(21) SEC registered investment advisory firm, is a wholly owned subsidiary of Vestwell Holdings, Inc., specializing in 401(k), 403(b) and other defined contribution and benefit retirement investment management services. Built by an experienced team with an average of 18 years of financial technology experience and led by CEO Aaron Schumm, Vestwell assumes 3(38) investment management and ERISA3(16) fiduciary responsibility on the behalf of advisors and their plan sponsor clients. Learn more at Vestwell.com and on Twitter @Vestwell.

This is not an offer, solicitation, or advice to buy or sell securities in jurisdictions where Vestwell Advisors is not registered. An investor should consider investment objectives, risks and expenses before investing. More information is available within Vestwell Advisors’ ADV.  There are risks involved with investing. Investors should consider all of their assets, income and investments. Portfolios are subject to change. All opinions and results included in this publication constitute Vestwell Advisors’ judgment as of the date of this publication and are subject to change without notice.

Media Contacts:
Jessica Torchia
917-636-4804
Jessica.Torchia@ficommpartners.com

Vestwell Announces Debut White-Label Partnership with Kovack Advisors, Inc.

Fully-Automated 401(k) Platform Provides Added Legal Protection Ahead of DoL Rule’s April Compliance Deadline

NEW YORK, NY — NOVEMBER 15, 2016 — Vestwell, the industry’s first and only fiduciary, white-labeled retirement platform for the RIA community and beyond, announced today that it has secured an advisory firm partnership with Kovack Advisors, Inc, an SEC registered investment advisor. Vestwell’s retirement plan management solution will be offered through The Kovack Choice 401(k).

Vestwell’s digital platform combines the best parts of automated investing with a human touch. In addition to allowing for automatic plan testing and enrollment of plan participants, and generating fully-compliant notices and agreements, the product suite includes investment services, trading, administration, custody, recordkeeping, and trustee services. Vestwell can also act as 3(38) and 3(16),taking on as much of the fiduciary responsibility as is allowable by ERISA and reducing legal liability related to retirement plan asset advisement.

“Advisors are concerned about the U.S. Department of Labor’s ‘fiduciary’ rule and want to reduce their risk of non-compliance. At Vestwell, we take on that risk on behalf of both advisors and plan sponsors, while also delivering a turnkey, time-saving solution that boosts efficiency to make offering retirement plan services good business again,” said Aaron Schumm, CEO of Vestwell. “We’re thrilled to be partnering with such a forward-thinking, industry-leading firm like Kovack Advisors on our white-label platform with them.”

“At Kovack Advisors, we are dedicated to providing our clients and affiliated advisors with the latest technology to both enhance our service offerings and quickly adapt to the latest DoL rules and regulations,” said Chris Mills, Executive Vice President of Kovack Advisors, Inc. “Vestwell’s innovative retirement platform retirement plan management solution makes it possible for advisors to offer defined contribution plans again, even if they previously shied away from them because of the hassle and risk of previous solutions.”

The Kovack Choice 401(k) platform is currently available to select advisor clients and will be available to all Kovack Advisor Inc.’s clients in the fourth quarter. For more information on Vestwell or to inquire about a white-label platform, please visit: http://www.vestwell.com. For more information regarding Kovack Advisors go to www.kovackadvisors.com and/or advisorinfo.sec.gov.

About Vestwell Holdings, Inc.

Vestwell Advisors, LLC, a 3(38) and 3(21) SEC registered investment advisory firm, is a wholly owned subsidiary of Vestwell Holdings, Inc., specializing in 401(k) and other defined contribution retirement investment management services. Built by an experienced team with an average of 18 years of financial technology experience and led by CEO Aaron Schumm, Vestwell assumes 3(38) and 3(16) fiduciary responsibility on the behalf of advisors and firms. Learn more at Vestwell.com.

This is not an offer, solicitation, or advice to buy or sell securities in jurisdictions where Vestwell Advisors is not registered. An investor should consider investment objectives, risks and expenses before investing. More information is available within Vestwell Advisors’ ADV.  There are risks involved with investing. Investors should consider all of their assets, income and investments. Portfolios are subject to change. All opinions and results included in this publication constitute Vestwell Advisors’ judgment as of the date of this publication and are subject to change without notice.