JPMorgan (NYSE:JPM) has reportedly decided to acquire OpenInvest, which is a provider of ESG tools for the wealth management sector.
Supported by investments from VC firm Andreessen Horowitz, Y Combinator, QED, and others, OpenInvest was established back in 2015 with a special focus on assisting advisors with tapping into the social and environmental impact of their customers’ investment portfolios.
Joshua Levin, Co-founder and CSO at OpenInvest, said that their partnership with JPMorgan “combines leading ESG technologies with America’s largest bank and the ability to reach nearly half of all American households.”
After the deal has been finalized, OpenInvest will still retain its own company brand and will simply be integrated into JPMorgan’s Private Bank and Wealth Management offerings.
This deal has come after JPMorgan Asset Management’s acquisition of 55ip, a Fintech firm that’s focused on offering tax-smart investment strategies via different model portfolios.
JPMorgan will be looking to leverage 55ip’s models along with OpenInvest’s ESG capabilities in order to offer customized, value-based and tax-efficient investment solutions for customers.
The terms of this deal have not been shared publicly.
In April 2020, OpenInvest, a U.S.-based investing platform, secured $10.5 million through its Series A1 funding round, which was led by QED Investors with participation from SystemIQ, Resolute Investment Managers, and ABN AMRO Ventures.
The funding round had come less than two years after OpenInvest raised $10.4 million through its Series A round, which was also led by QED Investors.
As covered, OpenInvest reported it has digitized the management of custom managed accounts. Clients ranging from only $100 to tens of millions of dollars in assets – and their advisors – use the OpenInvest platform to instantly launch portfolios that reflect particular environmental and social concerns, while tightly tracking any market index or specified investing strategy.
Thereafter, they have access to cutting-edge features such as real-time impact reporting, voting in shareholder resolutions with a swipe, full transparency, tax-loss harvesting, and other investing features.
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