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In 2026, the United States will hit a demographic milestone that’s been decades in the making: more people will turn 65 next year than in any other time in history.    This moment, often referred to as Peak 65, represents the apex of the Baby Boomer generation entering traditional retirement age. According to the Protected Retirement Income and Planning Study (PRIP), approximately 4.1 million Americans will turn 65 each year at the peak, a staggering figure with wide-ranging implications.    For the wealth management industry, Peak 65 is not just a population statistic. It's a signal, a tipping point, a market opportunity, and a challenge. Here’s what it means and how the industry is evolving to meet the needs of this grouping of Americans.     The Stakes: Why Peak 65 Matters     Unprecedented Demand for Retirement Income Solutions    The traditional approach to retirement, accumulating assets and slowly drawing them down, no longer meets the needs of many investors. A 2022 report from the Insured Retirement Institute found that only 26% of Baby Boomers are confident they have enough saved for retirement, underscoring the urgency for income-generating solutions.    WealthTech firms are responding by rethinking decumulation. Solutions that offer predictable, sustainable income, such as managed payout funds, dynamic withdrawal strategies, and personalized retirement planning tools, are growing rapidly. Providers are starting to blend behavioral finance and real-time analytics to help advisors optimize retirement outcomes.    The Rise of Annuities and Fiduciary-Friendly Income Tools    Annuities have long carried a mixed reputation, but that’s changing. In part due to updated fiduciary standards and product innovation, fee-based annuities and commission-free options are gaining ground. Firms have recently brought commission-free annuities into the RIA ecosystem, enabling advisors to offer guaranteed income options without conflicts of interest.    Annuities can also help tackle another retirement income challenges that is often, if not just about always, overlooked: longevity risk.    Tech-forward solutions are making annuities more accessible and transparent. Platforms are emerging that model lifetime income projections, assess product fit, and compare offerings across carriers. Expect this area to see accelerated growth as retirees prioritize income over growth in their portfolios.    A New Era for Fixed Income    The 2020s have ushered in a new rate environment. For the first time in over a decade, retirees can lock in relatively attractive yields from treasuries, muni-bonds, and other fixed income instruments. WealthTech platforms are racing to offer better access, education, and portfolio management capabilities in this domain.    Innovations like direct indexing for bonds, automated laddering strategies, and smart cash management, often paired with tax optimization tools, are bringing institutional-level fixed income strategies to the mass affluent market.    The Fight for 401(k) Rollovers and Liquidating Assets     While many firms like to focus on “The Great Wealth Transfer”, we also strongly encourage firms to focus on what Chip Roame calls “The Great Liquidation.” As people retire, they perhaps look to rollover their 401(k)s, sell the family business, downsize their house, etc. Making a play for those assets could very well be served with a cleaver retirement income proposal. It’s true that fewer people are retiring at 65 these days, but it is still a psychological milestone for many that likely gets them thinking.     With trillions of dollars sitting in workplace retirement plans, the post-retirement rollover market has become a battleground. According to Cerulli Associates, more than $500 billion is expected to roll over from 401(k) plans next year and it should increase after that. The firms that can best capture, retain, and manage these flows stand to gain enormous scale.    WealthTech platforms are positioning themselves at this intersection:    Digital advice platforms are using automation, personalized planning, and UX-driven design to attract rollover accounts.  Wealth management OS platforms are enhancing capabilities for complex wealth and estate planning as older investors transition assets.  Cash solutions are helping firms retain assets by offering insured, high-yield cash products that compete with money market funds.  Digital platforms that allow advisors to scale their advice over a 401k population, effectively becoming the “advisor of first resort”  Platforms that allow advisors to help bring a privately owned business into a unified financial plan, courting the small business owner    Strategic Implications for the Industry     Peak 65 is not a single-year phenomenon, it represents the beginning of a multi-decade shift in client needs and firm strategy. For advisors, banks, WealthTechs, and asset managers, the following areas demand focus:    Personalization at scale: Retirement income needs are deeply personal. WealthTech must integrate data (health, spending, goals) to generate more tailored advice.  Hybrid advice models: Combining human expertise with tech-driven planning will be key to scaling retirement readiness.  Regulatory clarity: As fiduciary standards evolve, firms that align early with best practices will gain trust—and market share.  Retirement as a platform: Expect to see end-to-end retirement platforms emerge with strategies that approach planning, income generation, benefits advice, and legacy solutions in unique ways.     WealthTech was born in the accumulation era. Now, it must come of age in the decumulation era.    For more information on the Peak65 theme, as well as the other WealthTech Themes of the Decade, feel free to read WealthTech Strategy Themes for the Rest of the Decade .  Sources:  Alliance Research   Insured Retirement Institute   Cerulli Associates - IRA Assets   Cerulli Associates - Regulatory Impacts   PR Newswire

Larry Fink, as Chairman of BlackRock, published his annual letter to shareholders containing some of his thoughts on the future. As always, it contains some interesting insights on where he thinks our industry is going, so long as you do a little digging. We would like to highlight his comments on the future of alternative investments in the retail wealth channel. Here is our skinny take: Alts will become more mainstream. He predicts that the traditional 60/40 portfolio is going to morph to a 50/30/20 portfolio, with the "20" being an allocation to alternatives. He says that Blackrock has traditionally seen itself as a traditional asset manager, but they now see themselves as an alts manager as of last year. It's their new mission to try and broaden the general investment of private capital. That is a difficult flag to retreat from once planted. Leading with private infrastructure? He feels a strong affinity for the opportunity in private infrastructure, which he describes as a $68 trillion demand opportunity. It's interesting that he spent most of the time talking about infrastructure as opposed to private equity, which is what most advisors think about when they think of alts. Blackrock did buy Global Infrastructure Partners (GIP), a large public infrastructure company that owns Gatwick airport, a score or so of ports, and other assets. They plan to use it as a platform to help "bridge the gap" (pun perhaps intended) between the 60/40 portfolio and their new vision of a 50/30/20 portfolio. Data will be key. He mentioned their acquisition of Preqin along with the desire, necessity, and perhaps inevitability of transparent data sources in alternative markets. He points to Zillow in the housing market. He points to the usual and intuitive argument about increased transparency increasing conviction, understanding, and ultimately, adoption. However, we think his subsequent comments around indexing are really where he thinks the data fits and, in fact, where he thinks the whole thing is going. Data will lead to indexing, which will lead to massive adoption. We think the real argument around data that he is making is really at the very center of where he thinks alts are going in retail: indexing. It is our belief that Blackrock wants a series of alts index products that effectively becomes the "20" in Fink's 50/30/20 portfolio. Are there problems with this? Yes. Are there solutions? Probably. Will they find the solution? I certainly would not bet against it and I think we will find out relatively soon. These are just our opinions. Feel free to read the whole letter here . This fits solidly into our "Interest in Alternatives" WealthTech Theme of the Decade. To read more about this theme and the others, see our piece WealthTech Themes for the Rest of the Decade .

FNZ has announced that they have raised an additional $500 million from existing investors. The proceeds will be used to "support long-term sustainable growth," which sounds pretty snazzy even if a bit light on detail. As a reminder, the big investors are Motive Partners and CPP Partners, having lead their $1.4 billion round in 2022. Tamasek and Caisse de dépôt are also in there, but there were no details as to participation rates or which investors participated. There are quite a few small and employee equity holders as well. Last year it was reported that 200+ small equity holders were concerned about the level of dilution on the last financing. Knowing if there was significant participation and support for this financing from those investors would show that the issue has now been resolved. Regardless, the bottom line is that FNZ, and Motive in particular, are out to transform the wealth management landscape for the better and we support them in that quest. Link to the FNZ announcement: https://www.fnz.com/news/fnz-raises-ususd500-million-in-new-capital-from-existing-shareholders-to

smallcase, a direct-to-consumer WealthTech firm providing thematic pre-packaged portfolios to the retail investor in India, today announced a $50mm Series D funding round lead by elev8 Venture Partners, a new investor, with participation from State Street Global Advisors and Faering Capital. This is the latest in a series of fairly sizeable WealthTech funding rounds from India and shows the strength of WealthTech in that geography. The direct-to-consumer strength in the Indian market makes sense to us as the number of mass affluent/HNW investors is growing well in excess of any sort of mathematical prediction of the future supply of human financial advisors. Technology seems to be the only reasonable answer. In the case of smallcase, they develop consumable model portfolios professionally designed around various investment themes. If you are looking for a pre-made basket on themes like "Aging of America" or some particular slice of AI, they may have one you can invest in off-the-shelf. We had a similar company here in the US years ago called Motif. They were ultimately acquired by Schwab in 2020. smallcase purports to have 10mm users, which perhaps speaks to the power of the Indian retail investment market and why VCs seem to be taking an interest. Link to announcement: https://www.smallcase.com/blog/smallcase-raises-50m-in-series-d-funding/

Robinhood continues its march upmarket with launch of robo advice and private banking(ish) services Robinhood continues to execute on its strategy to move upmarket, increase average balances, and service the growing complexity in their clients' financial lives. This is reflective of two strong themes we are seeing in the market: (1) Self-Directed Trading as Lead Gen and (2) Family Office as-a-Service. For more information on these and the other themes we are tracking, please see WealthTech Themes for the Rest of the Decade . Self-Directed Trading as Lead Gen quick recap: as the former "day traders" mature and develop more complicated financial lives, they will increasingly seek advice on what is now "real money" instead of "play money." Given the size of the installed base, this could represent an excellent source of low-cost leads. How does this announcement fit with the theme? A potential first step towards advice for technology-minded investors is robo advice and having a captive audience is a big advantage. Perhaps it is not surprising that Robinhood is choosing to offer this product in its typical, disruptive way: the AUM fee capped at $250/yr for Gold Members (who pay just $5/mo). Family Office as-a-Service quick recap: as consumers demand more services beyond just retirement planning, technology will focus on scaling some of the high-touch, low-scale services typically found at a family office and bring it down market to the masses. How does this fit with the theme? Robinhood also announced that it would start rolling out services later this year "normally reserved for the ultra-wealthy." These will include things like estate planning and tax prep, but also some things like discounted helicopter flights. We should also note that Robinhood recently acquired TradePMR, which gives Robinhood a solid footing in the RIA space and vice-versa. Link to Themes detail: WealthTech Themes for the Rest of the Decade Link to article: https://www.reuters.com/markets/wealth/robinhood-bring-wealth-management-private-banking-retail-investors-2025-03-27/

Introduction   Alternative investments have rapidly gained traction among individuals, financial institutions, and wealth managers. In response to market volatility and changing investment preferences, advisors and investors have increasingly turned to private equity, real estate, hedge funds, and private credit. Financial advisors’ recommendations of alternative investments have risen sharply in recent years, with CAIS reporting 9/10 advisors incorporating them in client portfolios, underscoring the growing demand for diversification and non-traditional asset classes. As clients are switching to passive ETF strategies, advisors are looking for other ways to add value. Platforms bolstered with alternative access are enabling RIAs to give a convincing pitch offering boutique private investment selection to their clients.   However, as the alternative investment market expands, it has become clear that structural inefficiencies remain. Transparency, liquidity, research, education, and onboarding friction continue to pose significant challenges. Addressing these issues is critical for the broader adoption and seamless integration of alternative investments into the wealth management ecosystem.    Challenges and Solutions in Alternative Investments     Transparency  One of the fundamental issues in alternative investments is the lack of transparency. Unlike public markets, where real-time pricing, financial disclosures, and performance data are readily available, private market investments often lack standardized reporting. Investors struggle to assess valuations, performance metrics, and underlying risk exposure. Additionally, capital calls, distributions, and fee structures are not always clearly communicated, making it difficult for advisors to maintain an accurate and holistic view of a portfolio.  To improve transparency, firms are implementing advanced data aggregation platforms, AI-driven document processing, and standardized reporting tools. Enhanced benchmarking capabilities and analytics allow investors to compare private investments with their public counterparts. Digital platforms now integrate real-time tracking of capital flows, helping investors understand commitments, cash flow projections, and investment performance with greater clarity. These solutions aim to provide a clearer picture of private market assets and reduce the opacity that has historically defined alternative investments.    Liquidity  Liquidity constraints have long been a concern for investors allocating to alternative assets. Many private investments involve long lock-up periods, preventing investors from accessing capital when needed. Unlike publicly traded securities, alternatives often lack a secondary market, making exits difficult.  In response, firms are developing structured liquidity solutions, including secondary markets for private securities, fractionalization of private assets, and tokenization of alternative investments. Some platforms are facilitating peer-to-peer transactions to create liquidity opportunities within traditionally illiquid markets. Additionally, the rise of interval funds and tender-offer funds offers periodic liquidity windows, allowing investors to exit certain private market positions under specific conditions. These innovations are gradually improving the accessibility and flexibility of alternative investments, making them more viable for a broader range of investors.    Research and Due Diligence  Advisors and investors often struggle with limited access to reliable research and due diligence tools when evaluating alternative investments. Private fund structures, varying manager performance, and complex fee arrangements make it difficult to assess the suitability and quality of investments. Unlike public markets, where extensive data is available, private markets require a higher level of individualized analysis and verification.  To address these gaps, platforms are offering curated fund databases, independent due diligence reports, and AI-powered research tools that aggregate data from multiple sources. Third-party risk assessment solutions are also being integrated into investment platforms to provide objective analysis of fund managers and strategies. Standardized fund rating systems and institutional-grade research tools are being developed to help advisors conduct more thorough evaluations. These advancements are enhancing the ability of investors to make informed decisions while reducing the risks associated with opaque investment structures.    Education and Adoption Barriers  Many financial advisors and investors lack the necessary education and resources to fully explain alternative investments, particularly to clients with no financial training. The complexity of private markets, the different risk-return profiles, and the nuances of liquidity constraints make it difficult for advisors to confidently recommend alternatives to their clients. Additionally, regulatory requirements and compliance considerations add another layer of complexity, further deterring adoption.  To overcome these barriers, wealth management platforms and investment firms are introducing structured learning modules, certification programs, and interactive educational content focused on alternative investments. Online courses, whitepapers, and advisory training programs are equipping financial professionals with the knowledge needed to navigate private markets. Additionally, regulatory technology solutions are being integrated into platforms to streamline compliance checks, investor accreditation verification, and documentation requirements. By enhancing education and simplifying compliance processes, firms are making alternative investments more accessible to advisors and investors alike.    Onboarding Friction  The process of investing in alternatives has traditionally been cumbersome, requiring extensive paperwork, manual document verification, and long processing times. Many investors face delays due to complex subscription agreements, accreditation checks, and compliance hurdles. Unlike public market investments, which can be executed with a few clicks, alternative investments often involve weeks of administrative work before transactions are completed.  To streamline onboarding, firms are leveraging digital workflows, e-signature integrations, and automated accreditation checks to reduce inefficiencies. Subscription platforms now provide a seamless, end-to-end digital experience, enabling investors to complete onboarding in a fraction of the time previously required. These solutions are also improving accuracy by reducing manual errors and ensuring that investment documents are processed efficiently. By automating key steps in the subscription process, onboarding friction is being minimized, allowing advisors and investors to allocate capital to alternatives more easily.    The Future of Alternative Investments   Notably, global AUM is projected to reach $29.2 trillion by 2029, reflecting a 74% increase from 2023 levels. As the alternative investment industry continues to evolve, solving these core challenges will be essential for long-term growth. Transparency, liquidity, research, education, and onboarding improvements are driving the adoption of alternatives within wealth management. While significant progress has been made, ongoing innovation and regulatory developments will make alternative investments more accessible, efficient, and investor friendly. As firms continue to refine their offerings and integrate these solutions into the broader wealth management ecosystem, the industry is moving toward a more seamless and scalable approach to alternative investing.    ©2025 WealthTech Strategy Partners LLC

Expands their high net worth services down to accounts with just $10mm Edward Jones announced that they are launching Edward Jones Generations™, a High-Net-Worth platform bringing Family Office-like services to clients with a minimum account size of only $10mm. This is one of the latest, and perhaps most excellent, examples of the Family Office as-a-Service Theme (see WealthTech Strategy Themes for the Rest of the Decade ) . It is about using the power of technology to scale the high-touch/low-scale services you might find at a family office and delivering them lower down the wealth chain. By the sounds of the product brand name, it seems like they will also use it as a play on engaging the next generation. If so, it makes sense.   In this case, it is about expanding their UHNW consulting efforts, currently housed in their Client Consultation Group, down-market to their upper HNW population. They have not told us (yet) what their population of $10mm+ net worth clients is vs the population of $25mm+ net worth clients, but our best guess is that it might triple the number of clients receiving these services currently. [i]  We will update if they do tell us or someone comes up with something better. That does not include attracting new $10mm+ accounts with the new service, which is a key part of their stated goal as well. If they can further lower their minimum to $1mm+, which we think is very achievable, it could represent another increase of 1700% or so to 500,000+ accounts. [ii]   The specific additional services that they mentioned offering (so far) are: ·         Tax Planning & Prep ·         Estate Planning ·         Trust Planning ·         Philanthropic Solutions ·         Business Succession Planning ·         Lending ·         Cash Management   Link to press release Link to WealthTech Themes for the Rest of the Decade [i] Extrapolating from an average account base assumption of $90k on 8mm accounts along the curve 4E+12^x-1.158 [ii]   https://adviserinfo.sec.gov/firm/summary/250

Corporate Venture Capital (CVC) is becoming a critical growth driver for early-stage companies. According to Pitchbook in a recent report, in 2024, the median US VC deal size with CVC participation surged to $13 million—the highest level since 2002 and more than triple the size of deals without CVC involvement. CVCs are also moving earlier in the investment lifecycle, with pre-seed and seed rounds accounting for 26.3% of CVC deals in 2024, a massive leap from just 5.6% in 2009. This trend signals a growing appetite among CVCs to partner with startups shaping the future of their industries.  Of the $191.7 billion in venture dollars invested in the US last year, CVCs participated in $107.6 billion worth of deals. This level of participation highlights the growing importance of strategic investors in the venture ecosystem. CVCs aren’t just providing capital—they’re also offering industry expertise, network connections, and the chance for startups to align with major incumbents. While CVC activity is booming, it rarely translates into acquisitions. Why?  Startups backed by CVCs often achieve higher valuations, making acquisitions financially challenging later.  For many CVCs, the goal is strategic insight and market learning rather than acquisition. These investments act as windows into emerging markets rather than precursors to outright ownership.  To navigate the CVC landscape, startups need to understand that CVCs have unique objectives. Incumbents often use CVC investments as a low-risk way to explore markets or evaluate technologies before committing significant resources to develop their own solutions. This means founders should position their companies to align with the specific strategic needs of each CVC investor. Founders should also be aware that it can take longer to get funding from a CVC than from a VC. This is because you may have to pitch them on the product before you can pitch them on the investment.   While not every deal will end in acquisition, these investments offer founders the opportunity to showcase their value to key industry players and potentially secure a long-term partnership to reach the masses.

Clearwater Analytics (NYSE: CWAN) has announced its acquisition of Enfusion (NYSE: ENFN), a move that will establish a comprehensive, front-to-back, cloud-native investment management platform. This strategic combination enhances workflow automation, data connectivity, and operational efficiency for institutional investors, asset managers, and hedge funds.    The $1.5 billion deal, structured as a mix of cash and stock, marks a significant expansion of Clearwater’s capabilities. By integrating Enfusion’s industry-leading front-office technology—including portfolio and order management—with Clearwater’s back-office accounting, compliance, and reporting solutions, the combined platform eliminates the inefficiencies of fragmented legacy systems.     “This acquisition is about seamless data management from the front office to the back office,” said Sandeep Sahai, CEO of Clearwater Analytics. “By bringing together two innovative platforms, we unlock powerful network effects that amplify client value.”     Clients will benefit from:  Unified workflows that reduce manual reconciliation and operational risk.  Faster, AI-driven automation for accounting, reporting, and portfolio oversight.  A cloud-native infrastructure ensuring real-time data access, scalability, and efficiency.     The deal also strengthens Clearwater’s position in asset management and hedge funds, two high-growth segments where Enfusion has gained strong market traction. Additionally, Enfusion’s international footprint—generating 38% of its revenue from Europe and Asia—accelerates Clearwater’s global expansion strategy.     The acquisition increases Clearwater’s total addressable market (TAM) by $1.9 billion and is expected to drive strong revenue growth, particularly as Clearwater expands its revenue per client from 1 to 4 basis points (bps).     By leveraging Clearwater’s operational scale and AI-driven efficiency, the combined company anticipates:  $20 million in cost synergies within the first 2.5 years.  Significant EBITDA margin expansion, with a 400 bps increase in Year 1 and an additional 400 bps in Year 2.     This acquisition is more than just a business combination—it represents a fundamental shift in investment management technology. The fragmented, multi-vendor approach that has dominated the industry is giving way to a truly integrated, end-to-end cloud-native solution.     With this move, Clearwater and Enfusion are not just expanding market share—they are reshaping the future of investment management technology.     Congratulations to the teams at Clearwater Analytics and Enfusion on this exciting milestone.

OneVest, a comprehensive wealth management technology platform, announced this week the closure of a $20 million USD Series B equity funding round. The round was led by Salesforce Ventures, with participation from new investors, Allianz Life Ventures and TIAA Ventures. Returning investors include OMERS Ventures, Deloitte Ventures, Fin Capital, Luge Capital, and Pivot Investment Partners. “We are tackling massive challenges in an industry that’s been traditionally slow to adopt new technologies. Having such esteemed investors solidifies our position to reimagine wealth management technology for enterprises across the U.S. and Canada,” says Amar Ahluwalia, CEO of OneVest. “With this new funding, we are poised to achieve our goal of becoming the leading wealth management platform in North America.” OneVest’s cutting-edge platform is designed with flexibility, allowing firms to roll out their full end-to-end solution, while large enterprises—including banks, Registered Investment Advisors (RIAs), asset management firms, and insurance companies—are able to pick and choose specific modules to modernize their wealth programs. Customers can save implementation time and cut down significantly on the cost of using various legacy vendors and manual processes. Additionally, the platform is highly configurable, enabling customers to offer tailored hybrid experiences for investors, and empower advisors to gain greater control and insights over their books of business. The $20 million in funding will be used for growth initiatives and to develop artificial intelligence (AI) tools and product features to support onboarding clients and rebalancing portfolios with alternative investments, Ahluwalia said in an interview. The firm’s first AI tools, including a feature that makes recommendations to financial advisors on next best actions, will be released later this quarter. “The key value [proposition] there is giving the advisor the ability to spend more time with the customer,” he noted. Strategic partnerships play a crucial role in OneVest’s expansion. The company is strengthening alliances with industry giants such as BlackRock, Vanguard, and Salesforce Financial Services Cloud to extend its capabilities within the financial services sector. Many of OneVest’s customers already use Salesforce, and the firm is working on deeper platform integration to unify the client-advisor experience.

We had a great time at The Wealth Mosaic’s first ever US WealthTech Vendor Forum and the AI toolkit roadshow. The conference was full of industry professionals and AI experts exchanging ideas about the future of Wealth, Tech & AI.  In case you missed it, here are a couple conversations that will continue through 2025:  Justin Whitehead, Chris Mcdonald, David Navama, Michelle Heppler are at the forefront of innovation and led the conversation regarding AI. Hyper-personalization, client engagement, and automation are the future, but the topic that kept on returning: AI is useless without accessible and clean data. Think of a CRM overflowing with client notes; essentially a digital junk drawer. But if AI can understand the context  of those notes – the emotions, the intentions, the nuances of each client interaction – then we're talking about something powerful. Clean data may be just as important, if not more important than the tech itself.  The next topic that needs to be on the forefront of founders and WealthTechs alike: adoptability. Having a great tech solution that achieves efficiency and produces more value for the end client is a great theory, but creating the perfect solution is only half the battle. Consider the time and cost for an enterprise to roll out your platform across the country. What barriers must an enterprise overcome to get from “I love this” to “Let’s implement this”? Further, once the platform is integrated, only 10-15% of tools offered are utilized by an individual advisor. After implementation, what moves the advisor from “I love this” to “I need to use this to service all of my clients”?    Thanks to Stephan Wall, and all those who attended and contributed to such vibrant discussions.