(Executive Chairman of the Board)
|Headquarters||303 Bryant Street, Mountain View, California, United States|
Number of locations
Eric Poirier (CEO)|
Daniel Bookstaber (COO)
Nancy Hilker (CFO)
|AUM||US$1.0 trillion |
Number of employees
In 2004, Joe Lonsdale co-founded Palantir Technologies, 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. In 2009, Lonsdale transitioned to an adviser and stopped working full-time at Palantir to launch Addepar in 2009.
2012–2013: RIA focus
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. 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." In 2013, Addepar focused on expanding risk analytics and their client portal.
2013–2014: Management transition
From 2009 through 2012, Addepar grew without a sales and marketing department with clients' coming from referrals of early investors in the company. 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. 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". 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." 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. In January 2013 Eric Poirier previously of Palantir was hired and in July of that year became CEO.
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."
Products and services
Bloomberg reported in 2017 that Addepar is a "software provider that tracks and analyzes exposures across portfolios."
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."
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.
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.
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.
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."
Criticism and controversy
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. 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.
Housing benefits program
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. 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. 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."
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