Vestwell Raises $385 Million to Power the Future of Saving

Vestwell, who started out as a Workplace 401k provider, and since, has expanded, recently secured $385 million in Series E funding to expand the modern savings ecosystem. This investment round was led by Sixth Street Growth and Blue Owl Capital with participation from several major financial institutions including Morgan Stanley and Franklin Templeton. The company provides the underlying technology for a variety of savings programs such as 401k plans and ABLE accounts which are used by more than 2 million active savers and 30,000 plans.

The firm intends to ‘close the $50 trillion savings gap in America’ by embedding its services more deeply into the channels where people earn their income. Vestwell aims to reach workers directly and simplify the process of building long-term wealth. This focus on intelligent infrastructure allows the company to automate administration and offer more personalized investment solutions that were historically available only to large institutional plans.

Of course, we are entering Peak 65 zone where 4.1 million Americans are expected to turn 65 annually starting this year. Wealth management platforms and advisors are increasingly focused on retirement income solutions and the competition for 401k rollovers as this demographic shift takes place. Vestwell is positioning itself as the connective layer for the savings economy to help a broad range of individuals prepare for these major life milestones through a unified and modern infrastructure.

Link to Article