Wealth and Asset Management Technology & Services: LLR’s 2024 in Review & Key Trends

January 31, 2025

The Wealth and Asset Management market is currently one of LLR’s most active sectors within the FinTech team. This sector is characterized by a large and growing market, with compelling market tailwinds that can present opportunities for technology and service providers to deliver innovative solutions that streamline operations, enhance client experiences and address the evolving needs of financial advisors, asset managers and their end clients.

Below is an update on LLR’s Wealth and Asset Management Investment Team’s 2024 exit activity, latest investment, key trends, and what we believe to be new investment opportunities within this sector. If you are working in this space, let’s continue the conversation. Email Sam Ryder or Connor Shaw.


2024 Exit Activity

Sale of PCS Retirement to Lee Equity Partners in March 2024

LLR partnered with PCS Retirement in September 2017. Over the course of our investment, PCS became one of the largest, independent retirement recordkeepers in the U.S. Read the Press Release.

 

 

Sale of Archer to BNY in November 2024

LLR partnered with Archer in May 2021. Archer established itself as a market leader providing middle-office solutions to institutional and retail asset managers. Read the Press Release.

 

 


New Investment: Soltis

LLR and Estancia Capital Partners’ Investment in Soltis Investment Advisors in August 2024

Beginning in 2021, LLR identified the registered investment advisor (RIA) market as a potential attractive area for investment given what we are currently seeing within the RIA markets, industry tailwinds, strong business model fundamentals and a highly fragmented market for accretive M&A (see GrowthBit). Read the Press Release.

 

 

We believe Soltis is well positioned at this time to capitalize on industry tailwinds given the following characteristics:

Talented Executives & Advisor Teams: Executive team each with 20+ years of experience in the industry, over 40 advisors across the U.S., and a history of training and developing the next generation of advisors internally.

Complementary High-Net-Worth Wealth and Institutional Expertise: Soltis serves both high-net-worth individuals and institutional retirement plans, helping to deepen the company’s expertise and client relationships.

Client and Advisor Retention: Strong culture and commitment to clients’ best interests.

Organic Growth Rate: Supported by productive custodial and other referral channels.

Enterprise Mindset: Team-based approach to serving clients and compensating advisors.

Alternative Investment Acumen: Suite of alternative investment products purposefully built to help provide greater diversification and limit volatility.


Key Trends in Wealth & Asset Management

LLR’s FinTech team is focused on identifying key trends in Wealth and Asset Management and partnering with market leaders that are aligned with those trends, including:

  • Growth of the independent registered investment adviser (RIA), increasing usage of technology by RIAs and opportunity for M&A in a large, highly fragmented RIA market. Portfolio examples include Soltis and YCharts.
  • Need for improved communication and distribution between asset managers, wealth managers and the end retail client. Portfolio examples include Archer and YCharts.
  • Demand for personalized investment strategies and managed accounts at scale. Portfolio example is Archer.
  • Increased access to employer sponsored retirement plans and demand for conflict-free, transparent investment offerings. Portfolio examples include PCS Retirement and Soltis.
  • Usage of 3rd party, outsourced middle and back-office providers to provide operational efficiencies and allow asset and wealth managers to focus on what they do best: generating return opportunities and servicing clients. Portfolio examples include Ultimus Fund Solutions, Archer, and PCS Retirement.

What’s Next for LLR?

We remain enthusiastic about the Wealth and Asset Management ecosystem and will continue to leverage our experience and network to partner with market leaders. One trend that has our attention is the growing retail demand and “democratization” of alternative investments.

Alternative asset classes such as private equity, venture capital, real estate and private credit which have historically been limited primarily to institutional and ultra-high-net-worth investors, are growing 10 – 20% annually.1 We believe more wealth managers (and their end retail clients) are seeking to increase allocations to alternatives driven by a desire for higher return opportunities, greater diversification, and less volatility.

With an increasing allocation to alternatives comes more complex operational and reporting requirements. LLR believes this trend should help generate investment opportunities that support the distribution, management and reporting of alternative assets.


LLR’s Experience in Wealth & Asset Management Tech & Services

 

Learn more about the LLR team, relevant investments and our focus on Wealth & Asset Management.

Read LLR’s 2024 Year in Review for information on investment activity across the entire firm. 


References

1.”Growth in alternatives AUM to Hit $23.21tn in 2026,” CAIA Association, 2022, https://caia.org/blog/2022/04/23/growth-alternatives-aum-hit-2321tn-2026

Disclosure 

The information presented herein is intended for an audience of potential LLR portfolio companies and the intermediaries supporting their capital raise processes. Named LLR investments presented herein do not reflect a complete list of LLR investments and are provided for informational purposes only. Certain statements about LLR made by portfolio company executives and other quoted parties herein are intended to illustrate the work of LLR’s Value Creation Team with such portfolio companies or reflect the individual’s perspective on the featured industry sector. Such portfolio companies are controlled by investment vehicles managed by LLR. Quoted parties were not compensated in connection with their participation, although they generally receive compensation and investment opportunities in connection with their portfolio company or Senior Operating Advisor roles, and in certain cases are also owners of portfolio company securities and/or investors in LLR-sponsored vehicles. Such compensation and investments subject participants to potential conflicts of interest in making the statements herein.