Riskalyze, a Sacramento, Calif.-based quantitative system for identifying client risk tolerance, aligning portfolios to client expectations, and quantifying the suitability of investments, received a $20m minority growth equity investment.
The round was led by FTV Capital. As part of the transaction, FTV Capital managing partner Brad Bernstein will join the company’s board of directors.
The company intends to use the funds to expand its line of digital offerings and hire new employees, especially on its product and engineering teams.
Led by Aaron Klein, CEO, and Mike McDaniel, co-founder and chief investment officer, Riskalyze provides a Risk Number®-powered Risk Alignment Platform for advisors to execute the digital advice business model with Autopilot and enables compliance teams to spot issues, develop real-time visibility and navigate fiduciary rules with Compliance Cloud.
It is used by advisors, broker-dealers, RIAs, asset managers, custodians and clearing firms to align investments with each investor’s Risk Number.
The company now employs more than 100 people from its offices in Sacramento and Atlanta.