JPMorgan has agreed to acquire OpenInvest, a provider of ESG tools for the wealth management industry.
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 social and environmetal impact of their clients' investments.
Joshua Levin, co-founder and chief strategy officer, OpenInvest, says of the deal: "Our partnership with JPMorgan combines leading ESG technologies with America's largest bank and the ability to reach nearly half of all American households."
Upon closing, the company will retain its own brand and be integrated into JPMorgan's Private Bank and Wealth Management client offerings.
The agreement follows JPMorgan Asset Management's recent acquisition of 55ip, a finech focused on delivering tax-smart investment strategies through model portfolios. The US bank intends to combine 55ip's models with OpenInvest's ESG capabilities to provide customised value-based and tax-efficient investment strategies for clients.
Terms of the deal were not disclosed.