Personal Capital, a US-based digital wealth manager that counts financial services firms BBVA and USAA as strategic investors, secured $75m in funding yesterday.
The capital was provided by IGM Financial, a subsidiary of financial services investment group Power Financial Corporation. IGM invested $50m at a $500m valuation and has agreed to add another $25m in 2017.
Personal Capital offers a wealth management service that combines licensed financial advisors with online finance tools. More than one million customers have signed up for the free tools, which now manage some $2.4bn of assets.
Jeff Carney, president and CEO of IGM Financial, will join Personal Capital’s board of directors. He said: “We believe the financial advisory landscape will be enhanced by the type of service that Personal Capital provides, and we’re delighted to be backing the leader in digital wealth management.”
Taking only IGM’s initial investment into account, Personal Capital has now raised about $150m altogether.
BBVA’s corporate venturing unit, BBVA Ventures took part in its $50m series D round in late 2014 alongside USAA, Corsair Capital, Institutional Venture Partners, Venrock and Crosslink Capital, which valued Personal Capital at about $250m.
Evercore was the financial advisor to Personal Capital for the series E round.