Addepar

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Addepar, Inc.
Private
Industry Financial technology
Founded September 2009; 9 years ago (2009-09)
Founders Joe Lonsdale
(Executive Chairman of the Board)
Jason Mirra[1]
Headquarters 303 Bryant Street, Mountain View, California, United States
Number of locations
4 (2016)
Area served
Worldwide
Key people
Eric Poirier (CEO)[2]
Daniel Bookstaber (COO)
Nancy Hilker (CFO)
Products Addepar Platform
Open API
Services
AUM US$1.0 trillion [3]
Number of employees
200[4] (2016[4])
Website addepar.com

Addepar, Inc. is an American investment management cloud based technology company that offers an integrated financial software platform.[2][5]

History[edit]

Origins[edit]

In 2004, Joe Lonsdale co-founded Palantir Technologies,[6] a company that builds software to enable the unification of datasets so that, for example, intelligence analysts' can run queries for surveillance and monitoring and financial institutions can identify fraud.[7] In 2009, Lonsdale transitioned to an adviser and stopped working full-time at Palantir to launch Addepar in 2009.[7]

2009: Formation[edit]

The company was incorporated as Addepar, Inc. in September 2009. Addepar was co-founded by Palantir co-founder Joe Lonsdale and an ex-employee of Palantir Jason Mirra in 2009.[8]

2012–2013: RIA focus[edit]

In 2012, Addepar expanded its target clients to include RIAs despite industry skepticism reported by RIABiz. To this focus, RIABiz reported that Addepar in 2012 was "beginning to roll out a sales and marketing force to bring in the big clients." In doing so, Addepar and Advent's Black Diamond were competing for the same RIA customers.[6] In 2012 RIABiz described Advent as "arguably the leading software company for RIAs depending on how you weight assets, advisors and cutting edge technology." In October 2012, Bloomberg Businessweek reported that Joe Lonsdale was running Addepar "attempting to modernize the software that ultrawealthy families and foundations use to manage their billions."[7] In 2013, Addepar focused on expanding risk analytics and their client portal.[1]

2013–2014: Management transition[edit]

From 2009 through 2012, Addepar grew without a sales and marketing department with clients' coming from referrals of early investors in the company.[6] In 2013, Addepar hired a head of sales from its competitor Advent (Black Diamond) who at the time was "widely considered the industry leader according to RIABiz.[9] During 2013, Addepar's primary competition Black Diamond, Tamarac and Orion "pulled away in the battle for RIA market share, with each of the brands adding about 50% to their asset administration totals".[9] In February 2013, Addepar lowered its pricing, focused on building relationships with custodians RIABiz reported that "industry leaders pointed out that it was time for the hot shot firm to grow up."[9] In 2013, Addepar sought to transition out of start-up mode and hired a new CEO and COO to start building out the company's management.[9] In January 2013 Eric Poirier previously of Palantir was hired and in July of that year became CEO.[9]

2015–Present[edit]

In September 2015, BloombergMarkets reported that Eric Poirier's strategic direction with Addepar "a startup that provides wealth management software, aims to get banks beyond spreadsheets."[10]

Products and services[edit]

Bloomberg reported in 2017 that Addepar is a "software provider that tracks and analyzes exposures across portfolios."[11]

Addepar Platform[edit]

As Joe Lonsdale co-founded Addepar and Palantir Technologies; some of the first algorithms behind the Addepar platform were collaborated on by early Palantir employees.

In 2012, Fortune reported that Addepar was connecting family offices and endowments to their respective investment managers and third parties managing their assets "facilitating fund transfers, generating speedy reports, tracking currency conversions, and cutting down on data-entry errors."[12]

The Addepar software facilities both visualizing an investment portfolios’ exposures at the individual asset class and also tabulating the portfolio’s total value according to realtime value of the assets under management.[13]

In 2014, the Wall Street Journal reported the Addepar platform as providing investment advisors "a dashboard to track the performance of many types of asset classes in one place. With a few clicks, a user can instantly see their exposure to the Japanese Yen, for example, or their 10-year rate of return measured against the price of gold or the Standard & Poor’s 500 index."

In April 2015, Addepar released a fully browser-based version of the platform.

Open API[edit]

In September 2016, Salesforce.com announced their partnership with Addepar for Salesforce's Wave Financial Services Cloud to facilitate financial advisers with the analytic tools to see across disparate and siloed asset classes producing a single visual whole for the client.[5]

In October 2016, Addepar released their Open API to provide clients and integration partners what Crowdfund Insider explained as "a programmatic solution to tie Addepar’s data and calculations into a multitude of other products and systems."[5]

Criticism and controversy[edit]

Market related[edit]

Industry analysts and competitors have also expressed doubts about Addepar’s goal of creating one complete, integrated solution. Dave Welling, general manager of Black Diamond, has criticized Addepar’s approach, arguing that advisors want to make their own combinations of software, and need custom-tailored rather than one-size-fits-all solutions.[9] Later in 2014 Black Diamond's CEO Pete Hess during a CFA Society Conference said "we definitely respect" Envestnet and Addepar when responding to a question about competitors.[14]

Housing benefits program[edit]

Business Insider reported that Addepar, Palantir, Facebook and Salesforce.com have been criticized for their programs to subsidize employee housing if employees live within a defined proximity to their headquarters due to encouraging employees to spend more time at work and increasing housing rents in the area.[15] Business Insider reported there is no consensus as to whether or not this contributes to gentrification of neighborhoods claimed by the chief executive officer, John Liotti, of East Palo Alto community advocacy group Able Works.[15] In defense of Addepar's $300 a month program head of people Lissa Minkin said explained the program allowed for employees to allocate more time to their families and personal interests; specifically "not having a long commute makes a huge positive impact on maintaining a healthy work-life balance."[15]

References[edit]

  1. ^ a b Hampton, Dina (8 March 2013). "10 Most Influential RIA Figures Going Into 2013 and How They're Reshaping the Industry, Part 1". United States: RIABiz. RIABiz LLC. Retrieved 13 February 2017.
  2. ^ a b Feintzeig, Rachel (15 June 2016). "Male CEOs Detail Their Work-Life Rules" (Eastern edition). New York, N.Y., United States: Wall Street Journal. Dow Jones & Company Inc. p. B1. Retrieved 21 December 2016.
  3. ^ "Addepar Surpasses $1 Trillion in Assets on Its Platform".
  4. ^ a b Silverman, Rachel (21 July 2016). "Companies Use Smartphones to Deliver Mental-Health Help" (WSJ). Australia: The Australian. Nationwide News Pty Ltd. p. 24.
  5. ^ a b c Hobey, Erin (26 October 2016). "Addepar: With $500B in Assets & New Salesforce Partnership, Launches Open API". United States: Crowdfund Insider. Crowded Media Group. Retrieved 29 December 2016.
  6. ^ a b c O'Mara, Kelly (10 June 2012). "Addepar means to be the only technology platform RIAs will ever need -- and has MIT minds and PayPal money to back it up". United States: RIABiz. RIABiz LLC. Retrieved 13 February 2017.
  7. ^ a b c Vance, Ashlee (18 October 2012). "Addepar's Software for the Super-Rich". United States: Bloomberg Businessweek. Bloomberg L.P. Retrieved 30 January 2017.
  8. ^ "Addepar Names CEO, President and COO" (Manufacturing Close-Up). United States: Close-Up Media, Inc. Close Up Media, Inc. 20 July 2013.
  9. ^ a b c d e f O'Mara, Kelly (23 March 2014). "The Face of Addepar Leaves the Company Amid Intrigue About Just Where It Stands With the RIA Market". United States: RIABiz. RIABiz LLC. Retrieved 21 February 2017.
  10. ^ Collins, Margaret (3 September 2015). "Four Entrepreneurs Talk About the Fintech Revolution - 'It's All Just Data'" (October). United States: BloombergMarkets. Bloomberg L.P. Retrieved 22 February 2017.
  11. ^ Tan, Gillian (17 January 2017). "Morgan Stanley Manages Just Fine" (Gadfly). United States: Bloomberg News. Bloomberg L.P. Retrieved 19 February 2017.
  12. ^ Lashinsky, Adam (11 September 2012). "Money management, Silicon Valley-style". United States: Fortune. Time Inc. Retrieved 27 December 2016.
  13. ^ Collins, Margaret (7 August 2015). "A How-To Guide for Opening Your Own Wealth Management Firm" (September). United States: BloombergMarkets. Bloomberg L.P. p. 14. Retrieved 13 January 2017.
  14. ^ "Advent Software Inc at CFA Society of Minnesota's InvestMNt Conference - Final" (Quarterly Earnings Reports). United States: Fair Disclosure Wire. 8 June 2014.
  15. ^ a b c Oran, Olivia (17 December 2015). "Facebook will give employees $10,000 if they move within 10 miles of its headquarters". United States: Business Insider. Business Insider Inc. Retrieved 25 January 2017.

External links[edit]