Personal Capital sells to Empower Retirement in deal worth up to $1B – ProWellTech
Today Personal Capital, a fintech company that has attracted over $ 265 million in private financing, has announced that it is selling itself to Empower Retirement, a company that provides retirement services to other companies. The deal is worth $ 825 million at close, with another $ 175 million in what is described as “planned growth” incentives, according to a release.
The deal is a likely victory for personal capital . According to Forbes, the venture was worth $ 660 million in the period of the Series F fund round, raised in February 2019. The company was valued at around $ 500 million in December 2016, which means that investors who have invested capital at that point, or before, probably did well on their investment.
Venture venture groups that added capital later, unless they had ratchet tools, probably didn’t earn as much from the deal as they initially hoped for. Regardless, an all-inclusive $ 1 billion release is nothing to complain about; Facebook once bought Instagram for so much money and the sheer cheek of the transaction at the time almost broke the Internet.
During his life as a private company, Crosslink Capital, IGM Financial, Venrock, IVP and Corsair each led to joining the company according to Crunchbase data.
Personal capital is a consumer service that helps people plan their retirement and invest their capital. The company offers free financial instruments and a higher cost wealth management option for accounts of at least $ 100,000. The company does not like to be called a robo-advisor, but claims to exist in the space between long-standing asset management relationships and fully automated options.
Regardless, the company’s selling price should help market competitors evaluate themselves. Here are the main Personal Capital statistics (data through Personal Capital, accurate as of May 31, 2020):
- AUM: $ 12.3 billion
- Users: 2.5 million
So, Wealthfront and M1 Finance and others, there are some metrics to weigh yourself on. Of course, other competing companies have different monetization methods, so the comparison will not be 100% direct.
The release of Personal Capital is part of the theme that ProWellTech has recently followed, in which savings and investment applications have seen an increase in demand for their products. This trend is not only in the United States where personal capital is located, but also abroad.
In addition to Personal Capital’s release today, we also saw huge deals from Plaid in 2020, which sold to Visa for over $ 5 billion, Galileo’s release for over $ 1 billion, and the sale of Credit Karma north of $ 7 billion. In response to this particular news, ProWellTech’s Danny Crichton noted that fintech is “probably the hottest exit market right now.” He is right.