Sacra estimates that Addepar generated $275M in revenue in 2024, up 31% from $210M in 2023. This represents a reacceleration from 2023's 27% year-over-year growth rate, driven by significant AUM expansion and large enterprise deals.

Addepar's revenue growth has been underpinned by impressive expansion in assets under management, which reached $7 trillion in 2024, up from $5 trillion in 2023. The company added more AUM in 2024 than any previous year, including through major partnerships like Itaú Private Bank in Brazil bringing $180B in AUM.

The company serves approximately 1,200 client firms as of 2024, with average revenue per customer rising to $229,000, reflecting its focus on enterprise clients and family offices. While RIAs represent about 50% of Addepar's client base, they account for a disproportionate share of managed assets.

Addepar was reportedly seeking to raise $250 million at a pre-money valuation of $3.25 billion as of January 2025. This would represent a significant increase from its previous valuation of $2.2 billion in June 2021.

The company has raised a total of $560 million in funding to date. Key investors in Addepar include Joe Lonsdale (co-founder) through 8VC, Valor Equity Partners, WestCap, and D1 Capital Partners. The anticipated funding round is expected to include participation from existing investors.

Addepar provides a cloud-based wealth management platform that solves a critical problem for sophisticated wealth managers: tracking complex portfolios across multiple custodians and asset classes. The platform was built specifically to handle difficult-to-model alternative investments that traditional reporting systems struggle with.

When a wealth management firm uses Addepar, they can aggregate data from over 350 custodial institutions across 45 countries, giving their advisors a complete view of client holdings. The system ingests positions and transactions daily from more than 7 million accounts, allowing wealth managers to track standard financial products alongside alternative assets like private equity, venture capital, real estate, and even collectibles.

What makes Addepar distinctive is its ability to create customized reports that accurately track performance across these diverse assets. An advisor can generate client-facing dashboards showing exactly how a family office's real estate investments are performing compared to their venture capital portfolio or public equity holdings—all with accurate performance calculations that account for the unique characteristics of each asset class.

In September 2024, Addepar expanded beyond reporting by adding native trading capabilities that process portfolio rebalances in ~500ms across thousands of accounts, allowing advisors to manage and trade directly from the same platform they use for reporting and analysis.

Addepar employs a B2B SaaS model with AUM-based pricing. The company charges between 0.008% and 0.03% of assets under management, with higher rates for smaller firms (under $350M AUM) and negotiated lower rates for larger institutions managing billions in assets.

This premium pricing strategy positions Addepar differently from competitors—it charges 10% to 80% more than rivals for firms with modest AUM. For example, while Addepar might charge $65,000 annually for a $220M AUM firm (0.03% of assets), competitors like Tamarac charge 12% less, Orion 56% less, and Black Diamond over 80% less for similar-sized clients.

Addepar justifies this premium through heavy investment in technology, spending $100M+ annually on R&D (approximately 40% of revenue) and maintaining 43% of employees in technical roles. This approach mirrors that of Palantir, co-founded by the same investor (Joe Lonsdale) who helped create Addepar.

The cost structure yields estimated gross margins around 70%, significantly higher than competitors like Envestnet (60.5%) and SS&C Technologies (49%). These margins are sustained by focusing on large, high-ACV customers that create economies of scale in support, account management, and infrastructure costs.

Envestnet's Tamarac leads the RIA market with 18% share, followed by Orion (14%) and SS&C Technologies' Black Diamond (8%). These platforms typically offer lower pricing—Envestnet charges about 12% less than Addepar, Orion 50%+ less, and Black Diamond 80%+ less for mid-sized firms.

While these competitors provide similar core functionality (performance reporting, portfolio rebalancing, billing), they generally lack Addepar's sophistication in handling alternative investments and complex portfolios.

Competitors are developing capabilities to manage alternative investments alongside traditional assets. InvestCloud has made significant investments in this area, potentially narrowing Addepar's unique value proposition.

These specialists typically focus on specific niches within the alternative asset space rather than providing Addepar's comprehensive platform approach, but their collective innovation threatens Addepar's differentiation in the alternatives space.

Major custodians like Schwab and Fidelity offer their own advisor platforms with basic reporting capabilities. While wealth managers rate these platforms as mediocre (typically "C-" in customer feedback), they come at little to no additional cost to advisors who custody assets with these firms.

These platforms support "separately managed accounts" (SMAs) that can integrate with third-party systems, but generally lack the specialized capabilities for alternative investments that Addepar provides.

Despite capturing $2 trillion in RIA assets (approximately 25% of total RIA market assets), Addepar has penetrated only 2.7% of the 18,500 SEC-registered RIAs. The bulk of these firms—between 9,000 and 14,000 RIAs—still use basic tools for portfolio management, representing a significant growth opportunity.

The total addressable market for sophisticated portfolio management and reporting systems in the RIA space is estimated at $1.2-1.3 trillion.

Private market assets are forecast to surpass $30 trillion globally by 2030, creating substantial opportunity for Addepar's specialized reporting capabilities.

As wealth managers increasingly allocate to alternatives seeking uncorrelated returns, Addepar's technological edge in modeling these assets becomes more valuable. The platform already tracks over 250,000 unique positions in alternative investments, with approximately 40% of customer assets in alternatives.

Addepar's partnership with Itaú Private in Brazil demonstrates its international growth strategy beyond its traditional US stronghold. The company currently serves clients in over 40 countries through its platform, which integrates with 350+ custodial institutions across 45 countries.

As wealth managers globally seek comprehensive technology solutions for managing both traditional and alternative assets, Addepar's international opportunities continue to expand.

Premium pricing barriers: Addepar's significantly higher pricing compared to competitors (12-80% premium) may limit its ability to penetrate the broader RIA market, particularly smaller firms. While the company has successfully targeted larger RIAs and family offices, its stated goal of reaching further down-market may be hampered by price-sensitive buyers unwilling to pay the premium.

R&D investment balance: The company's heavy technology investment ($100M+ annually, approximately 40% of revenue) mirrors Palantir's approach but may extend its path to profitability. While this investment drives innovation and justifies premium pricing, it creates pressure to maintain high growth rates to satisfy investors in an increasingly competitive landscape.

Competitive technology erosion: As competitors develop their own capabilities for tracking alternative investments and create more seamless integrations, Addepar's key differentiators may erode over time. Companies like InvestCloud are building solutions to manage alternative investments alongside traditional assets, potentially narrowing Addepar's technological advantage and undermining its premium pricing strategy.