Baltimore-based Facet Wealth, a fintech company that provides financial planning services to more than 10,000 clients, has secured $100 million in Series C funding to help continue its rapid growth, the firm announced yesterday.
Most of the funding comes from Durable Capital Partners, a private equity provider based in Chevy Chase, Md., that specializes in investing in small and mid-cap companies in both public and private markets. Series C funding is raised by established, successful companies after initial funds have been raised through Series A and B.
The $100 million that was raised by Facet Wealth is one of the largest private equity investments in a financial advisory consumer-facing company ever made, said Anders Jones, CEO and founder of Facet Wealth, in an interview.
“This shows that we are serious about building a generational, long-lasting company with the ability to impact tens of millions of people,” Jones said. “We are just getting started on our journey, which will differentiate the past from the future of the financial services industry. We are offering financial services for the future.”
Facet Wealth charges clients an annual subscription fee ranging from $1,800 to $6,000 depending on the complexity of the clients' needs. The average fee is $3,000. The subscription model allows Facet Wealth to serve clients who have no assets to manage currently, he said.
Founded in 2016, the firm has increased its client and revenue base tenfold in the last two years and hopes to double its business this year with the help of the new funding, Jones said. The firm has $1 billion in AUM. Seventy percent of its clients have never worked with a financial advisor before, which shows the vast, untapped market of individuals who need financial advice, Jones said.
Facet Wealth previously raised $65 million in Series A and B funding. The new funds, as well as those from the earlier rounds, come from Durable Capital Partners, as well as Warburg Pincus, Telesoft Partners, Slow Ventures and Green Cow Venture Capital.
The new funding will be used primarily to continue fueling the firm’s growth through investments across its technology and product suite platforms, to enhance the client experience, and to hire more engineers, Jones said. The firm now has more than 300 employees in 42 states, 104 of whom are CFPs. The rest are engineers or work in technical support positions, among the operations staff or in other positions.
“Facet is doing something innovative in personal finance,” said Henry Ellenbogen, chief investment officer at Durable Capital Partners, in a statement. “The firm stands at the forefront of an era in which people will benefit from the use of new technology that results in personalized financial plans suited for their specific needs and aspirations. With a strong team, we believe Facet is well-positioned for sustainable, long-term success.”
Facet Wealth said that by combining its proprietary technology with the expertise of its CFP professionals, Facet is creating a new standard in financial planning and increasing access to underserved American households. In the transparent subscription model, Facet’s fees are designed explicitly to serve clients across all phases of their financial lives, the firm said.