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Technology > Investment Platforms

Personal Capital Hits $5B Milestone

By Danielle Andrus

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Personal Capital announced on Wednesday that it has reached $5 billion in assets under management. The hybrid digital advice provider has added $2 billion in the last year.

“The key to our success is that we’ve given our customers the best combination of technology and access to human advice from day one,” Jay Shah, CEO of Personal Capital, said in a statement.

Shah replaced founder Bill Harris as CEO in April.

Unlike other robos like Betterment that have recently introduced human advice as a way to attract new users in the face of incumbents’ more scalable acquisition costs, Personal Capital has always worked in the niche between DIY investor and staid banking stalwart.

“We’re not a robo-advisor that is just now adding a few people to offer live advice, and we’re not a 100-year-old bank struggling to build and bolt new technology onto their advisory force,” Shah said. “We’ve been a true hybrid from the start, focusing on giving people tools and guidance that empower them to achieve their goals.”

In addition to growing total AUM, Personal Capital is also attracting users with bigger initial investments. New clients invested an average $395,000 in 2017 so far, up 37%.

The firm’s premium service, Private Client Service, which serves clients with at least $1 million to invest, accounts for 39% of the business.

“When investors see a view of all of their financial accounts in one place through our Dashboard, they’re often surprised by their lack of diversification and how much they’re paying in fees to certain institutions,” Shah said. “For investors with complex financial lives or for those who are just too busy to manage their own investments, we take the time and worry out of building an investment strategy.”

— Read Personal Capital, PeerStreet Announce Integration on ThinkAdvisor. 

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