GeoWealth announced Monday that it raised a total of $38 million in a Series C funding round that was led by alternative asset manager Apollo.
The $38 million includes the $18 million investment by BlackRock, J.P. Morgan Asset Management and Kayne Anderson Capital Advisors that was announced a year ago, according to GeoWealth.
This is Apollo’s “first engagement with GeoWealth,” a GeoWealth spokesperson told WSR.
GeoWealth said it plans to use the capital to expand its public-private model capabilities, as well as invest in product development and human capital to meet increased demand for broader assets in unified managed accounts (UMAs).
As part of the use of proceeds from the funding round, GeoWealth said Monday that it also completed an acquisition of the turnkey asset management platform (TAMP) assets from Freedom Advisors.
GeoWealth And Apollo Team Up On Private Market Funds
GeoWealth also said Monday that it and Apollo teamed up to expand access to customizable public-private model portfolios for RIAs.
GeoWealth says the partnership will combine its UMA technology using its proprietary portfolio management software with Apollo’s private markets “building blocks” to help clients build multi-asset portfolios.
“With Apollo joining as a strategic investor and partner, we’re accelerating our commitment to building unified public-private model portfolios and supporting advisors with the flexible technology, investment choice and resources they need to deliver customized solutions,” said Colin Falls, CEO of GeoWealth.
He added, “Advisors are seeking turnkey access to private markets, and our tech-enabled implementation platform will allow them to run a models-based practice with the flexibility and breadth to meet complex client needs.”
“Investors are increasingly looking beyond public markets for greater diversification and differentiated returns,” according to Stephanie Drescher, Partner and Chief Client and Product Development Officer at Apollo.
“To meet this demand, Apollo is deeply committed to expanding access to institutional-quality private markets solutions and backing leading technologies reducing friction from the process,” she said. “Together with GeoWealth, we are working towards empowering RIAs to build modern portfolios that integrate public and private strategies for their clients.”
Paul, Weiss, Rifkind, Wharton & Garrison served as legal counsel to Apollo on the deal.
Baker & McKenzie and Depew Gillen Rathbun & McInteer served as legal counsel to GeoWealth.
As of March 31, Apollo says it had $785 billion of assets under management.
Jeff Berman, Contributing Editor and Reporter at Wealth Solutions Report, can be reached at jeff.berman@wealthsolutionsreport.com.
