J.P. Morgan to acquire ESG investing platform OpenInvest

By Pavithra R

J.P. Morgan has announced entering into an agreement to acquire OpenInvest, a leading financial technology company that helps financial professionals customize and report on values-based investments.

“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.

Founded in 2015, OpenInvest is a YCombinator and Andreessen Horowitz-backed startup powering the post-fund future. It was built with a core focus on helping advisors unlock the true impact of their clients’ investments. The firm offer premium ESG investing products that reflect the impact of clients’ investments.

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

Under the agreement, OpenInvest will continue to 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.

The 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.

“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.

J.P. Morgan Asset & Wealth Management is a global leader in investment management and private banking with more than $2.4 tn in ESG-integrated assets under management and $4 tn in client assets overall.