Keep pulling the thread on Jason Wenk.
Altruist has raised over $600 million in capital and does not anticipate needing additional funding.
Altruist's broker-dealer has been profitable for approximately three years.
Formula Folios grew from $0 to $4 billion in assets under management in 5 years.
The majority of infrastructure used by financial professionals at legacy custodians is 50 to 70 years old and operates on mainframes.
85% of standalone RIA assets are held by Schwab and Fidelity.
Following the acquisition of TD Ameritrade, Schwab and Fidelity control over 80% of the RIA custodian market share.
At the time Jason Wenk stepped down, Formula Folios was the fastest-growing RIA in history with a 3-year growth rate of 16,000%.
Jason Wenk theorizes that legacy custodians avoided offering fractional shares to increase idle cash balances, from which they earn significant net interest income.
For large public custodians, transaction commissions constituted only 5-10% of their total revenue before the shift to zero-commission trading.
After going to zero-commission trading, either Schwab or TD Ameritrade reported that 57% of their gross revenue came from the float on client cash.
Altruist's integrated platform is 60-80% cheaper for advisors than buying individual software components from third-party vendors.
On a per-dollar basis, Altruist earns more revenue than any other RIA custodian because it offers more integrated services.