Investor support enables Alphathena to meet growing advisor demand for custom, accessible direct indexing and tax-loss harvesting solutions

January 18, 2024 09:00 AM Eastern Standard Time

WARRENVILLE, Ill.–(BUSINESS WIRE)–Alphathena, the Morningstar Fintech Showcase 2023 “Best in Show” winner and leading AI-powered direct indexing platform for Registered Investment Advisors (RIAs), has secured a $4-million investment led by ETFS Capital, with Hyde Park Angels (HPA) joining the round. This significant funding fuels Alphathena’s mission to empower advisors with accessible and customizable direct indexing solutions. Now, advisors can better meet their clients’ evolving needs and stand out in a competitive landscape.

“We believe that Alphathena’s independent and innovative approach positions it for significant growth in the market.”

“We are thrilled to have the support of two such esteemed investors as ETFS Capital and HPA,” said Mohan Naidu, founder of Alphathena. “Their belief in our platform and the future of direct indexing and personalization validates our vision of democratizing access to this powerful investment strategy for advisors of all sizes.”

The decision for ETFS Capital and HPA to invest in Alphathena comes at a perfect time in the industry, as more advisors seek greater personalization strategies for their clients leveraging direct indexing and tax-loss harvesting — yet many feel they have limited options. By leveraging Alphathena’s AI-driven software and support, more RIAs can differentiate themselves in a competitive marketplace while effectively meeting their clients’ investing goals.

“Alphathena has developed a truly innovative solution that addresses a critical need for advisors seeking to offer customized direct indexing and tax-loss harvesting strategies,” said Martyn James of ETFS Capital. “The platform’s user-friendly interface and powerful investment tools are truly impressive, and I believe Alphathena has the potential to revolutionize the way advisors manage their clients’ portfolios.”

Beyond tax benefits, industry leaders see the future of direct indexing focusing on the ability to tailor investment exposure to individual needs (custom indexing). Notably, Alphathena is the first strategic investment ETFS Capital has made in the past two years, highlighting their conviction in the platform’s potential.

“The Alphathena platform enables clients to build and optimize investment strategies truly customized to their individual needs at scale,” said John Crosson of HPA. “We believe that Alphathena’s independent and innovative approach positions it for significant growth in the market.”

With this strategic investment, Alphathena is committed to continue advancing product development plans while also doubling down on key distribution areas of their business. Their goal is to put this technology in the hands of more independent advisors and growing firms.

Mark Weeks of ETFS Capital and John Crosson of HPA will be lending their expertise and guidance to the Alphathena team as they join their Board of Directors.

For advisors interested in learning more, Alphathena founders Mohan Naidu and Tushad Driver will be hosting a webinar on February 8 at 2 pm EST focused on the evolution of direct indexing in the financial services industry. This event is free to attend, but registration is required. Click here to register.

For more information about Alphathena and to schedule a demo, visit https://www.alphathena.com.

About Alphathena

Alphathena is an AI-enhanced SaaS platform for Personalization and Direct Indexing, built for RIAs, Wealth Managers and Fintech platforms. It offers customization, direct indexing, automated tax-loss harvesting, optimized allocations, rules-based rebalancing, portfolio transition tools, and much more, available via Web solutions and open API for WealthTech partners to integrate natively into their workflow. Founded in 2020 by a team with deep expertise in the financial services and technology sectors, Alphathena’s solutions fuel growth for the most forward-thinking financial advisory firms and Fintech platforms in the world. For more information, please visit https://alphathena.com/.

About ETFS Capital

Founded in 2018, ETFS Capital is a London-based global venture capital firm investing in businesses operating in capital markets across the world. What sets ETFS Capital apart is the firm’s foundation, which is built on deep industry knowledge and a philosophy centered on partnering with founders who are seeking to disrupt the industry status quo. With a long history in the investment management and capital markets space, ETFS Capital leverages its networks and experience to provide lasting value that supports long-term relationships. For more information, please visit https://www.etfscapital.com/.

About Hyde Park Angels (HPA)

HPA is a leading early-stage investor based in Chicago. Its People First model leverages world-class operating expertise, a powerful business network, and venture capital to fuel startup success. As a result, its founders transform their businesses into industry leaders, its investors generate best-in-class returns, and its community experiences job creation and economic growth. For more information, please visit https://hpa.vc/.

Contacts

Tina Powell
Partner at Intention.ly on Behalf of Alphathena
tina@growintentionally.com

Martyn James
ETFS Capital
info@etfscapital.com

Stephen Ross
HPA
stephen@hpa.vc

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