Wealthsimple began rolling out its alternative offerings in April 2022 to give qualified retail investors access to asset classes typically available only to institutional investors and the ultra-wealthy.
Those three investment funds have seen demand from retail investors: the Toronto-based FinTech startup told BetaKit that it has now raised over $200 million CAD collectively across its funds, which span venture capital, private credit, and private equity.
All of this funding has come from retail investors. While a Wealthsimple spokesperson declined to disclose how much each fund has raised individually, Wealthsimple chief investment officer Ben Reeves previously indicated that at least $130 million of that amount has gone into its private credit fund.
Founded in 2014 as an investment platform, Wealthsimple has since added spending and savings accounts, cryptocurrency trading, tax filing, and peer-to-peer payments offerings.
Following the rise of retail investing during the pandemic, Wealthsimple launched a ‘super app’ with all of its offerings under one roof in the summer of 2022.
“It’s been great to see so much interest from retail investors who could benefit from access to private investing opportunities,” Reeves told BetaKit.
While Wealthsimple may be known for its basic trading platform, its alternative investment offerings are targeted toward affluent clients with “sufficient risk capacity and investment horizons.” Reeves noted that the company has “a diverse group of clients that span across varying levels of investor needs.”
According to Wealthsimple, investors interested in its alternative investing options must have at least $100,000 in assets with Wealthsimple and meet its suitability screening.
The company’s push for alternative retail investment options started in April 2022 with Wealthsimple’s Venture Fund I, which gives clients access to pre-initial public offering tech companies. In March 2023, Wealthsimple partnered with Sagard to give customers the ability to invest in “institutional-grade” private credit.
Wealthsimple launched its private equity offering last November in the form of a fund managed by co-investor LGT Capital Partners, the Liechtenstein royal family’s wealth management group.
Wealthsimple’s venture capital fund has closed, but its private credit and private equity funds are open-ended.
With files from Josh Scott.
Feature image courtesy Wealthsimple.