JPMorgan Chase has agreed to buy OpenInvest, a San Francisco fintech that helps financial professionals customize and report on values-based investments.
OpenInvest will retain its brand and be integrated into J.P. Morgan’s Private Bank and Wealth Management client offerings. The $3.7 trillion-asset JPMorgan did not disclose the price it will pay.
The deal is expected to close in the third quarter.
OpenInvest was founded in 2015.
“Clients are increasingly focused on understanding the environmental, social, and governance impact of their portfolios and using that information to make investment decisions that better align with their goals,” Mary Callahan Erdoes, CEO of J.P. Morgan Asset & Wealth Management, said in a Tuesday press release.
The announcement follows J.P. Morgan Asset Management’s recent purchase of 55ip, a fintech focused on delivering tax-smart investment strategies through model portfolios. Over time, JPMorgan plans to leverage OpenInvest’s ESG capabilities with 55ip’s tax-smart investment strategies.
OpenInvest was advised by Moelis & Co. and Morrison & Foerster. JPMorgan was advised by Dechert.