J.P. Morgan agrees to acquire OpenInvest, a pioneer in values-based investing

Accelerates ESG investing capabilities for Wealth Management clients

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Jun 29, 2021, 06:30 ET

NEW YORK and SAN FRANCISCO, June 29, 2021 /PRNewswire/ -- J.P. Morgan today announced that it has entered into an agreement to acquire OpenInvest, a leading financial technology company that helps financial professionals customize and report on values-based investments. The company will retain its own brand and be integrated into J.P. Morgan's Private Bank and Wealth Management client offerings. The terms of the deal were not disclosed.

Backed by capital from Andreessen Horowitz, Y Combinator, QED, and others, OpenInvest was founded in 2015 with a core focus on helping advisors unlock the true impact of their clients' investments.

"Clients are increasingly focused on understanding the environmental, social, and governance (ESG) impact of their portfolios and using that information to make investment decisions that better align with their goals," said Mary Callahan Erdoes, CEO, J.P. Morgan Asset & Wealth Management.

"At OpenInvest, we believe that aligning capital with social and environmental values is a critical driver of widespread change," says Conor Murray, Co-founder and CEO, OpenInvest.

"Our partnership with J.P. Morgan combines leading ESG technologies with America's largest bank and the ability to reach nearly half of all American households," said Joshua Levin, Co-founder and Chief Strategy Officer, OpenInvest.

"OpenInvest will be a powerful resource for our advisors to use in helping clients personalize their investments," said Michael Camacho, CEO, J.P. Morgan Wealth Management Solutions.

"This acquisition further advances our strategic focus on sustainable investing, and we are thrilled to welcome OpenInvest to J.P. Morgan," said Ben Hesse, Head of Strategy and Business Development for J.P. Morgan Asset & Wealth Management.

This announcement follows J.P. Morgan Asset Management's recent acquisition of 55ip, a leading financial technology company focused on delivering tax-smart investment strategies through model portfolios. Over time, J.P. Morgan will leverage OpenInvest's ESG capabilities with 55ip's tax-smart investment strategies to deliver customized solutions to Private Bank and Wealth Management clients that are values-aligned and tax-efficient.

OpenInvest was advised by Moelis & Company LLC as financial advisor, and Morrison & Foerster LLP served as legal counsel. Dechert LLP served as legal counsel to J.P. Morgan during the acquisition process. The deal is expected to close in the third quarter.

About J.P. Morgan Asset & Wealth Management
J.P. Morgan Asset & Wealth Management is a global leader in investment management and private banking with more than $2.4 trillion in ESG-integrated assets under management and $4 trillion in client assets overall. J.P. Morgan Asset & Wealth Management's clients include institutions, high-net-worth individuals and retail investors in every major market throughout the world. The division offers investment management in equities, fixed income, alternatives and liquidity; as well as, retirement products, brokerage and banking services. JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $3.7 trillion and operations worldwide. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

About OpenInvest
OpenInvest is a values-based financial services company that helps advisors engage their clients and grow their business. We offer environmental, social, governance (ESG) investment management products and impact reporting services. Our investment management solutions use proprietary technology to seamlessly create low-cost investment portfolios tailored to our clients' values while tracking market indices. Our sophisticated impact reports reflect the tangible impact our clients' portfolios have on the world. Funded by Y Combinator, Andreessen Horowitz, and QED, OpenInvest is one of the only VC-backed Public Benefit Corporations. Learn more at openinvest.com.

SOURCE J.P. Morgan