Filling a gap
Facet Wealth responds to a gap in the market: clients with assets under $1 million, whose accounts aren’t profitable under the legacy, high-cost model of traditional financial advice. The company makes personalized services affordable to this group by charging an annual fee determined by the level of service needed. Facet Wealth pairs its clients with a certified financial planner who works with them directly, and facilitates the advisor’s work through sophisticated artificial intelligence, which reduces the time needed for preparation and follow-up support.
Jeff Stein, managing director at New York-based investment firm Warburg Pincus, a lead backer of Facet Wealth, describes the start-up as “a category-defining company that is well-positioned to disrupt the wealth management industry for years to come.”
Pandemic push
Facet Wealth responds to a gap in the market: clients with assets under $1 million, whose accounts aren’t profitable under the legacy, high-cost model of traditional financial advice. The company makes personalized services affordable to this group by charging an annual fee determined by the level of service needed. Facet Wealth pairs its clients with a certified financial planner who works with them directly, and facilitates the advisor’s work through sophisticated artificial intelligence, which reduces the time needed for preparation and follow-up support.
Jeff Stein, managing director at New York-based investment firm Warburg Pincus, a lead backer of Facet Wealth, describes the start-up as “a category-defining company that is well-positioned to disrupt the wealth management industry for years to come.”
Building on a long-time strength
In September, Facet announced $25 million in Series B funding, bringing the total investment it had raised from Warburg Pincus, Slow Ventures and others to over $62 million.
“Facet [is] democratizing financial planning, the way that Schwab democratized investing,” commented Chip Roame, managing partner of Tiberun Strategy to the online journal RIABiz.
“In five years, my guess is that Facet may [be] a large standalone public company on the way to becoming the next Schwab.”
The financial services industry has always been a strength of Baltimore, birthplace of Alex.Brown and T. Rowe Price and host to major banking operations. So it is not a surprise that fintech’s future would also take shape here.
As Facet Wealth navigates its exponential growth, Jones is optimistic about the city.
“It absolutely is possible to build a generational company in Baltimore, and we’re excited for the long-term prospects of the ecosystem here,” he said.