JPMorgan announced today an agreement to acquire sustainable investing-focused financial technology company OpenInvest. According to JPMorgan, the acquisition aims to accelerate ESG investing capabilities for its Wealth Management clients.
Mary Callahan Erdoes, CEO, J.P. Morgan Asset & Wealth Management, said:
“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.”
Founded in 2015, OpenInvest provides ESG investment management products and impact reporting services, using proprietary technology to help financial professionals customize and report on values-based investments. The company was funded by Y Combinator, Andreessen Horowitz, and QED.
Joshua Levin, Co-founder and Chief Strategy Officer, OpenInvest, said:
“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.”
OpenInvest will retain its brand, and the company will be integrated into J.P. Morgan’s Private Bank and Wealth Management client offerings. JPMorgan stated that over time, it will leverage OpenInvest’s ESG capabilities with recently acquired 55ip’s tax-smart investment strategies to deliver customized solutions to Private Bank and Wealth Management clients that are values-aligned and tax-efficient.
Ben Hesse, Head of Strategy and Business Development for J.P. Morgan Asset & Wealth Management, said:
“This acquisition further advances our strategic focus on sustainable investing, and we are thrilled to welcome OpenInvest to J.P. Morgan.”