401k fintech company FeeX, which enables financial advisors to manage client retirement accounts and assets held away, announced Wednesday that it raised $80 million across three recent funding rounds. Led by Lightspeed Venture Partners, they also include The Founders Kitchen, Hanaco Ventures, Hyperwise Ventures, Blumberg Capital, and “prominent individual investors.”
The company also announced that it changed its name to Pontera.
“Being a fiduciary means finding the best possible solutions for our clients …”
The company noted that the name Pontera comes from the Latin “pont,” meaning bridge, and “reflects the company’s aspirations to create the bridge between individuals and a better retirement.”
Launched a decade ago, it allows financial advisors to “securely and compliantly manage their clients’ held away accounts, such as 401ks and 403bs, as part of their overall portfolio,” according to Pontera.
“There are tremendous benefits to advisor management of held away accounts, including 401ks,” Pontera co-founder and CEO Yoav Zurel said in a statement. “Third-party studies have found that a professionally managed 401k account can outperform a self-directed account by more than 3% annually, even after accounting for fees. Prior to Pontera, advisors who wanted to provide this support had limited options that often came with security or compliance risks.”
Industry reaction
In the last year, Pontera has announced integrations with a number of technology partners, including Orion Advisor Solutions, Advyzon, and others, making it “even easier for financial advisors to provide holistic service to their clients.”
“Being a fiduciary means finding the best possible solutions for our clients. Partnering with Pontera allows us to provide a wider array of services to them with the goal of creating long-term value and more comfortable retirement,” said Randy Long, CEO of SageView Advisory Group, a retirement-focused RIA with $150 billion in assets under management. “The 401k often makes up a significant portion of our clients’ assets and is critical to include in developing and executing on a comprehensive fiduciary plan.”
“401k accounts have become a key component of the overall financial picture for many of the more than 40,000 families we serve,” said Ron Carson, founder and CEO of Carson Group. “Our ability to securely and purposefully manage these assets through Pontera has been a game-changer for our clients and our advisors who serve them.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
