Pave raises $14m for AI-driven portfolio management platform

Editorial

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Founded by veterans from the likes of Goldman Sachs, JP Morgan and Morgan Stanley, Pave helps investment advisors customise, personalise and automate portfolio construction and management.

Wealth advisors spend an average of 18 hours a week managing portfolios, says Pave. This time commitment leaves advisors unable to scale without sacrificing client customisation.

The startup’s proprietary software platform aims to solve this by combining an alpha scoring algorithm, optimisation engine and trading platform to deliver personalised portfolios aligned to each client’s goals and risk profile.

The platform was originally used as the quantitative models driving billions in asset management by Pave’s investment team. Since founding Pave, using machine learning and predictive analytics, the team has converted the quantitative models into a self-service software platform allowing advisors to access what they claim is their decades of investment acumen.

As markets shift, Pave generates buy and sell recommendations, executes trades directly, and builds customised portfolios that align with client objectives while keeping risk consistent with chosen benchmarks.

Over the last 15 years, the standard model behind Pave’s software has outperformed the S&P 500 by an average of 285 basis points per year. Since the launch of the software and integration with many of the major custodians, Pave has begun deploying the software to independent investment advisors that, in the aggregate, manage more than 60,000 accounts with more than $18 billion in client assets.

Christopher Ainsworth, CEO, Pave, says: “Pave is transforming how portfolios are built, personalized and managed. This new injection of capital enables us to accelerate innovation, expand our capabilities, and further support advisors in delivering truly personalized investment outcomes at scale.”