Wealthsimple Surpasses $200 Million Combined Across Venture Capital, Private Credit and Equity Funds

The FinTech company’s trio of alternative investment funds has attracted demand from retail investors.

Simple wealth 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.

These three investment funds have received demand from retail investors: The Toronto-based FinTech startup told BetaKit that it has now collectively raised more than CA$200 million through its funds, which cover capital -risk, private credit and private equity.

All of this funding comes from retail investors. While a Wealthsimple spokesperson declined to reveal how much each fund had raised individually, Wealthsimple Chief Investment Officer Ben Reeves previously reported that at least $130 million of that amount had gone to his 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 boom in retail investing during the pandemic, Wealthsimple launched a “super app” bringing all of its offerings under one roof in summer 2022.

“It’s great to see so much interest from retail investors who could benefit from access to private investment opportunities,” Reeves told BetaKit.

Although Wealthsimple is known for its core trading platform, its alternative investment offerings are aimed at wealthy clients with “sufficient risk capacity and investment horizons.” Reeves noted that the company has “a diverse group of clients that span different levels of investor needs.”

RELATED: Wealthsimple launches private equity offering for retail investors

According to Wealthsimple, investors interested in its alternative investment options must hold at least $100,000 in assets with Wealthsimple and meet its selection criteria.

The company’s efforts toward alternative retail investment options began in April 2022 with Wealthsimple. Risk Fund I, which gives customers access to pre-initiative technology companies. In March 2023, Wealthsimple partnered with Sagard to offer clients the opportunity to invest in “institutional grade” securities private credit.

Wealthsimple launched its private equity offering last November as a fund managed by co-investor LGT Capital Partners, the wealth management group of the Liechtenstein royal family.

Wealthsimple’s venture capital fund is closed-ended, but its private credit and private equity funds are open-ended.

With files from Josh Scott.

Featured image courtesy of Wealthsimple.

Matilda Baker

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