There are huge tailwinds propelling financial services firms. Vestwell is one that’s clearly enjoying the breeze.
The New-York based workplace savings fintech just raised $385 million in Series E funding with Blue Owl Capital and Sixth Street Growth leading the round. The haul more than doubled Vestwell’s total fundraising to $660 million, with participation from new and existing investors including Neuberger Berman, Morgan Stanley and Franklin Templeton. The infusion will be used, in the words of the firm, to expand distribution “across all channels where income is earned and benefits are delivered.” So, it’s leaving its options open.
“We’re focused on an ambitious goal to close the $50 trillion savings gap in America,” Vestwell founder and CEO Aaron Schumm said in a statement. “This capital allows us to move faster on the work that matters most.”
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Vestwell’s business lines include direct and advisor-distributed 401(k) plans, workplace emergency savings accounts, state-backed IRAs, programs that seed early wealth for college savings, student debt management, and ABLE accounts that protect benefits for people with disabilities, all delivered through a single infrastructure layer. The financing doubles Vestwell’s valuation since its 2023 Series D funding round, according to the announcement, and the firm has surpassed $200 million in annual recurring revenue. Its platform already covers millions of savers:
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More than 2 million active savers are using Vestwell-powered programs.
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More than $50 billion in assets administered across workplace, institutional and government channels.
“The financing reflects investor confidence in Vestwell’s role as the infrastructure layer for how Americans save,” Schumm added. “It reflects strong confidence from leading investors in our unified savings platform and our ability to scale across payroll, partners and products.”
The AI Angle. Schumm said the funding will support AI-driven capabilities and extend savings pathways beyond retirement by embedding Vestwell’s services more deeply into payroll, benefits platforms, financial institutions and government-led public programs. The company is also expanding access to professionally managed investments that go beyond age-based defaults..
“Vestwell has built a resilient platform with strong underlying economics and a clear path for continued expansion,” said Tim DeGrange, a principal of Blue Owl Capital. “Vestwell is building long-term infrastructure for the savings ecosystem, enabled for today’s age of AI.”
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