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Riskalyze to Expand Digital Offerings With $20M Equity Investment

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Riskalyze announced on Monday that it has received a $20 million minority growth equity investment from FTV Capital to expand its digital offerings.

This is the company’s first outside institutional round of investment, Riskalyze noted in a press release.

“We’re excited to expand our impact on the industry and the 240,000 advisors we built Riskalyze to serve,” Aaron Klein, CEO at Riskalyze, said in a statement. “We founded Riskalyze on a mission to align the world’s investments with each investor’s Risk Number, and empower anyone to invest with confidence. We’re proud to have a great firm like FTV joining us on that journey.”

In addition to the investment, Brad Bernstein, managing partner for FTV Capital, will join the Riskalyze board of directors.

“Frequent episodes of market volatility since the financial crisis have reinforced the imperative for investment advisors to have a deep understanding of their clients’ risk tolerance,” Bernstein said in the statement. “The regulatory environment, and most recently the DOL fiduciary rule, is providing further tailwinds to the rapidly growing demand for Riskalyze’s digital platform.”

Riskalyze employs over 100 people and expects to “aggressively hire new employees, especially on its product and engineering teams,” according to the statement.

The company joined the robo race last year with its Autopilot platform, a private-label automated asset  management platform for advisors. It expanded its automated offerings in July with Autopilot for Retirement Plans, a risk alignment platform that lets advisors match retirement plan participants with investment allocations.

“We are passionate about providing investors with a platform that gives them confidence and helps reduce fear often associated with investing, and today’s announcement propels us even faster on the path to supporting every investor,” Mike McDaniel, co-founder and chief investment officer at Riskalyze, noted in a statement. “Everything we do is focused on equipping great investment advisors to do the right thing for their clients, and FTV’s track record in helping to build great companies that serve advisors will be an important asset along the way.”

— Read Coders: The Business Partners You Didn’t Know You Had on ThinkAdvisor’s TechCenter.