ImpactAlpha, June 30 — San Francisco-based robo-advisor OpenInvest launched in 2015 with the ambitious goal of democratizing impact investing, and attracted investment from QED, Y Combinator, Andreeseen Horowitz and others.
The crowded retail market for ethical investing led to a shakeout; Swell closed its doors in 2019, and Motif was carved up last year (see, “Retail platforms for sustainable investing struggle to differentiate themselves – and to attract customers“).
OpenInvest pivoted from its direct-to-consumer approach and toward technology partnerships with wealth advisors. J.P. Morgan manages more than $4 trillion in client assets, of which it says $2.4 trillion are “ESG-integrated.” The acquisition gives OpenInvest “the ability to reach nearly half of all American households,” said co-founder Joshua Levin.
ESG+
J.P. Morgan’s wealth advisors can use OpenInvest to help clients personalize their portfolios. The bank late last year acquired the fintech company 55ip, which helps advisors optimize tax strategies. J.P. Morgan’s Private Bank and Wealth Management plans to combine the offerings to help advisors deliver combined ESG and tax-smart investment strategies. Terms were not disclosed.
