Andreessen Horowitz’s recent hiring of Jordan Park Group’s former chief investment officer, Michel Del Buono, suggests the venture capital firm is moving into wealth management for startup founders.
The company, better known as a16z, confirmed the hiring of Del Buono as CIO to oversee these types of services for founders. as first reported by Bloomberg.
TechCrunch has reached out to A16z for comment but has not received a response at the time of writing.
Andreessen Horowitz isn’t the first to delve into this arena. both meconiq capital and Sequoia Capital provide money management services.
Iconiq is Over $80 billion under managementversus $23 billion in 2020, and its client list contains Mark Zuckerberg, Sheryl Sandberg and Jack Dorsey.
Meanwhile, Sequoia’s business unit, Sequoia Heritage, was founded in 2010 and reportedly currently has $16.4 billion under management Bloomberg. This is just one of the numerous internal programs that the venture capital giant offers to founders.
As Bloomberg Remarks, Wealth management can be an extremely profitable endeavor once the money starts rolling in. Managers charge a percentage of the assets they manage and profit margins can reach as high as 50%.
Andreessen is no stranger to breaking the norm in the venture world. In 2019 Andreessen became official became a registered investment adviser, which meant the company no longer had to limit its holdings, including in its general fund.
A16z recently made headlines for a different reason when it announced it was going ahead The headquarters will be “in the cloud“. In addition to giving up a central headquarters, a16z announced new offices in Miami Beach, New York and Santa Monica in addition to existing locations in Menlo Park and San Francisco.
This move was notable given that the long-established venture company was founded in Menlo Park in 2009 and has historically been associated with the Bay Area. It also reflects how much has changed since the COVID-19 pandemic as more companies and venture firms work remotely.
The firm also announced earlier this year that this was the case Building an accelerator for young entrepreneurs, which could also indicate that it wants to expand its offering.
https://techcrunch.com/2022/08/03/a16z-now-wants-to-manage-the-money-of-the-entrepreneurs-it-backs/ a16z now wants to manage the money of the entrepreneurs it backs – TechCrunch