Posted In:

NextCapital, Wealth Management, US


NextCapital Raises $30m Series C

Published:

Jan 04, 2018


Source:

Chicago Business

Posted In:

NextCapital, Wealth Management, US

Published:

Jan 04, 2018


Source:

Chicago Business


Share:

NextCapital made its reputation helping investment managers track and manage their clients' portfolios. Now it's got to keep track of a big investment of its own.

The financial software company raised another $30 million, led by Oak HC/FT, a venture fund based in Greenwich, Conn. Two years ago, Chicago-based NextCapital raised $18 million, led by strategic investors such as AllianceBernstein and John Hancock parent Manulife, which offer mutual funds and use the company's software.

NextCapital, founded 21 years ago as Business Logic, started to take off in the past four years as financial services firms have looked to software to allow them to offer more personalized service while keeping costs low. It also reflects the surge in passive investing as more retirement accounts are dominated by exchange-traded mutual funds. NextCapital has raised $54.3 million since 2014.

The company will use the money to add talent in software development, customer operations and building algorithms, says President Dirk Quayle. It tops 90 employees, up from about 40 two years ago. Since then, Quayle says, the company's customer base has grown about four times larger. Other big customers include Transamerica, Russell Investments and State Street Global Advisors.

Companies use NextCapital's software to track thousands of individual client portfolios and to take action on asset-allocation and make individual investment choices, such as exchange-traded funds, based on algorithms. Some customers use the software to handle one task or the other, while others use it for both.

Oak HC/FT has invested in other Chicago-based companies in health care and financial services, including Insureon and Village MD.

The company will use the money to add talent in software development, customer operations and building algorithms.

Dirk Quayle, President NextCapital

Share:

Previous Article:
Mastercard, PepsiCo Among Nation's Best Places To Work
Next Article:
Oak HC/FT leads $30m Series C in NextCapital
The views expressed here are those of the individual FinTech Collective LLC (together with its affiliates “FTC”) personnel quoted and are not the views of FTC or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by FTC. While taken from sources believed to be reliable, FTC has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. In addition, this content may include third-party advertisements; FTC has not reviewed such advertisements and does not endorse any advertising content contained therein.

Any designations found herein have been made by a third party, and although FTC has no reason to believe that such designations, or the criteria for being considered for such designations, are inaccurate or misleading, FTC does not guarantee its accuracy, and such designations may be incomplete or condensed. No compensation was paid in exchange for any designations, endorsements, or testimonials found herein. The hyperlinks referred to herein are provided for your reference only.

This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. This content does not constitute an offering or form part of any offering or any solicitation of any offer to subscribe to or purchase any investment by FTC, nor shall it or the fact of its distribution form the basis of, or be relied upon in connection with any contract therefore. Any such offer will be made only by means of definitive investment offering documents. The information included herein is subject to change without notice to any recipient. Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by FTC, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by FTC (excluding investments for which the issuer has not provided permission for FTC to disclose publicly as well as unannounced investments in publicly traded digital assets) is available at https://www.fintech.io/portfolio and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://www.fintech.io/disclosures for additional important information.