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.
The announcement was made in conjunction with the T3 fintech conference happening January 22-25, 2024 in Las Vegas. 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.
“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.
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, visit https://alphathena.com/.