Vestwell recently secured a significant Series E funding round, raising $385 million. This move nearly doubled the company’s valuation to $2 billion in less than two years.
The U.S.-based digital savings platform concluded this round with contributions from both old and new investors, totaling $660 million raised overall. The round was jointly led by Blue Owl Capital and Sixth Street Growth, alongside investments from Neuberger Berman, SLW, Morgan Stanley, Franklin Templeton, TIAA Ventures, and HarbourVest.
Vestwell, established in 2016, operates a platform designed to help companies store and manage employee retirement savings primarily through 401(k) plans. The company collaborates with independent wealth management firms, human resources services providers, and asset managers for its distribution network.
Scale and Financial Performance
Vestwell now serves over two million active users and manages more than $50 billion in assets, as reported by the company. It has achieved an annual recurring revenue of over $200 million and is growing profitably. The recent round builds on a previously closed Series D funding of $125 million in December 2023, indicating significant growth during this period.
The fresh capital will be used to enhance broader distribution efforts and increase access to more sophisticated, professionally managed investment products.
Market Context
The U.S. workplace retirement savings market has witnessed a surge in fintech investments as both employers and employees look for digital alternatives to traditional pension administration systems. Platforms like Vestwell play roles at the intersection of payroll, benefits administration, and asset management. They have benefited from a trend towards consolidating savings and investment tools into single employer-facing interfaces. The participation of established financial institutions such as Morgan Stanley, Franklin Templeton, and Neuberger Berman as investors in this round demonstrates growing institutional interest in the digital retirement savings sector.
Vestwell’s valuation milestone places it among a few fintech platforms that have achieved unicorn status within the U.S. retirement and workplace savings space.
