Investment Portfolio Management Software

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What is it?

Let’s talk money. Investment portfolio management software tracks and manages investor portfolios. It usually includes features like:

• Investment tracking,

• Investment accounting,

• Reporting,

• Client communication tools,

• Investment analytics tool

These tools are either used to manage assets of clients of investment funds (think “agency” for investments) or assets of investment funds. Some tools expand that use case to productized services like creating SPVs or just helping with notarized documents.

Who’s the buyer?

At smaller funds that it’s usually an operations leadership (COO). However other titles could include asset management or investments in larger firms. On the lower end of the market, we have single operators: financial advisors.

60% of buyers are in the SMB segment, 23% in the mid-market, and 18% in the enterprise market.

What is the problem?

Managing money is hard and requires a lot of trusts. People tend to use apps or spreadsheets - even for personal use. The same rules apply for $30B asset funds that manage money for clients. And they ain't gonna do apps.

The problem that these companies solve is that there is a lot of financial data, it’s hard to analyze it, make smart financial decisions, and report those decisions to clients that trusted you with thousands of dollars.

How big is the market?

The top 10 players bring about $5B in ARR. The combined annual revenue of all players in the market is north of $10B.

How fast is it growing?

In the past 3 years, the market has grown 53% with an average of 15% YoY growth.

Who are the top 10 players?

Revenue numbers are estimated - except for 2 companies that are on public markets.

How much are people paying?

Users pay between $50 to $300 a month for basic products. For more advanced products and features, such as risk management tools, expect pricing to range between $600 to $1500 a month per user.

I found it to be more expensive than I thought. Imagine selling 500 seats for $1500/mo per user...

How are they buying?

Some in the SMB segment have the option of self-serve signup - however, they are targeting the financial advisor persona. The rest of the players in the market have the “request a demo” motion.

Thank you for reading! Until next Wednesday.

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