We talk to the chief executive of Addepar, Eric Poirier, about the firm's strategy, his thoughts about how he wants it to grow, outsourcing, the amount of M&A taking place, and the EMEA market opportunity.

As wealth managers change business models, merge with peers and try to navigate technology and markets, firms providing outsourced services must do far more than simply offer a way to cut costs – important though that is.

“The conversation has moved beyond ‘outsourcing for cost savings’ towards partnering to deliver a differentiated, scalable and sustainable solution to key stakeholders,” Eric Poirier, chief executive of US fintech Addepar, told this news service in a recent interview.

We spoke when Poirier was in London as part of a business trip – a regular occurrence for a man whose international working life means that he is no stranger to airports. He and his colleagues have been busy. In May, the firm closed its $230 million Series G investment round.

“Firms in the UK and Europe aren’t just looking for a vendor; they are looking for an enduring partner to unify their operating model and drive quality outcomes in a systematic way. The biggest shift we have seen is how families and firms that deeply understand market dynamics and industry trends are now viewing software as an investment, rather than as a back-office expense,” he said.

With a number of wealth managers going through M&A transactions around the world – think of the volume of RIA deals in the US, or the Corient, Stanhope Capital and Stonehage Fleming combinations, for example – it can mean that firms which already outsource some of their work may find the process easier than those that build everything in-house, then have to integrate systems with minimal disruption. There is no “right” or “wrong” approach here, of course. (Some firms stress that their in-house tech is a virtue, such as Lombard Odier.)

“We see this constantly. When wealth management firms look to merge, the biggest operational risk is usually data integration. If you have two firms speaking different data ‘languages’, with incompatible legacy systems, the integration can drag on for years,” Poirier said.

“Addepar acts as a bridge. By standardising the data layer first, we lower the barrier to entry for M&A. This allows leadership teams to focus on integrating their cultures, operating models and client relationships, rather than wasting capital untangling spaghetti code and spreadsheets. We are, in a sense, the infrastructure that makes consolidation viable and scalable,” he said.

As well as talking about M&A in wealth management, the firm has undertaken its own corporate acquisitions. In May, for example, Addepar said it had acquired Arcus, an innovator in enterprise AI workflows, for an undisclosed purchase price.

“Addepar is in a strong financial position, which gives us the flexibility to be thoughtful. When we evaluate potential acquisitions, we look for capabilities that complement our long-term vision – whether that’s deepening our data foundation, enhancing key workflows, or advancing the use of AI,” Poirier said. “Any move we make is grounded in a clear view of how it strengthens our ‘whole portfolio’ offering.”

Among other developments, Addepar recently appointed Peter O’Brien as chief revenue officer and Janeen France as its first chief client officer. Other C-suite executives include chief technology officer Bob Pisani, chief financial officer Eric Daniels, and chief people officer Sally Buchanan. Meagan Ward is chief marketing officer and Delisha Grant is general counsel.

There have also been notable client wins. In early June, the firm said HSBC UK Private Banking became the first “major UK bank” to adopt its software platform designed specifically for wealth managers. This follows adoption by HSBC’s US private bank, with the rollout in the Channel Islands and Luxembourg due later this year.

Scale is central to the business. Addepar’s platform aggregates portfolio, market and client data covering around $8 trillion in assets. Within this total, the asset mix is becoming increasingly complex, reflecting the shift in wealth management and private banking towards alternative investments such as private markets.

Getting sophisticated
“The defining characteristic of modern wealth management – particularly in EMEA – is increasing sophistication,” Poirier said. “We are seeing a massive convergence where portfolios are no longer just ‘60/40’ stocks and bonds. They are global, multi-currency and multi-jurisdictional, and increasingly allocated to alternative assets.”

“Roughly 40 per cent of the $8 trillion on Addepar’s platform is in alternatives, private assets and other non-marketable securities – a level that has remained consistent for more than a decade.”

“What has changed is the rising importance of total-portfolio analysis, reporting and planning. Family offices and private banks in Europe and the Middle East need to evaluate strategic and tactical asset allocation across all asset classes, structures and geographies in a way that reflects each client’s unique goals, objectives and preferences,” Poirier continued.

“This creates a data challenge: legacy systems simply cannot reconcile a complex private equity structure in Luxembourg with a public equity portfolio in the US and a real estate holding in London. The trend isn’t just about ‘buying software’; it is a flight to quality data. Firms increasingly recognise that to deliver high-value advisory work, they need a ‘whole portfolio’ view that is accurate, timely and capable of handling cross-border nuances. They need a technology and data platform that is purpose-built to turn that complexity into clarity,” he said.

Outsourcing: not as simple as it sounds
There has been a marked trend among wealth managers and banks to outsource work to third-party specialists, galvanised by rising cost pressures. This trend may have further to run, but it is not straightforward, and regulators such as the UK’s Financial Conduct Authority (see a report here) and the US Securities and Exchange Commission (see here) are scrutinising the risks. In early February, the European Central Bank raised a red flag about tech outsourcing risks, saying that non-EU firms play a disproportionate role.

(See this news service's annual Technology and Operations report for more data on these topics.)

“We invest over $100 million annually in R&D to ensure our platform is not just innovative, but durable,” Poirier said. “When a client puts their data on Addepar, they are upgrading their operating model to benefit from our security standards, data quality controls and governance. This allows them to embrace AI and automation with confidence, knowing the data foundation beneath it is solid.

“The trend has much further to run, but it is shifting towards deeper, long-term infrastructure partnerships rather than simple point solutions and back-office outsourcing.”

Regulatory scrutiny plays to Addepar’s strengths, Poirier argued.

“When regulators seek tighter oversight of AI and third-party vendors, it validates the need for institutional-grade infrastructure,” he said. “Our clients operate in highly-regulated environments, and Addepar is built to provide the clarity and control they need to meet those obligations. As expectations evolve, we view these shifts as opportunities to elevate standards across the industry. Stronger data foundations and rigorous governance ultimately protect investors. Our commitment is to serve as the constant – a reliable, transparent platform that upholds strong levels of operational discipline.”

This news service asked Poirier which markets offer the greatest growth potential for Addepar.

“While the US remains our largest market, our growth trajectory in EMEA is significant because the problems we solve – multi-entity and jurisdictional complexity, and first-class support for the full range of asset classes, investment types and currencies – are native to this region.

“We have recently opened offices in Geneva and Dubai, adding to our established presence in London and Edinburgh. This isn’t just about sales; it’s about localised support and client success. An external asset manager in Zurich or a family office in the UAE operates under different regulatory and cultural frameworks from a firm in San Francisco. We are investing heavily to ensure our data network and bank connectivity, data residency, reporting standards and local expertise match those distinct needs.

“At the same time, we are seeing strong momentum in Latin America, where we now serve more than 100 leading firms, and we are expanding more strategically in Asia-Pacific as demand in the region grows,” he said.

The firm has moved from a purely centralised model to one with what Poirier described as “deep local density,” underpinned by “dedicated regional leadership and support teams across our EMEA offices – London, Edinburgh, Geneva and Dubai.”