Vestwell has raised USD 385 million in a Series E funding round, doubling its valuation to USD 2 billion in just over two years.
The US-based digital savings platform closed the round with participation from both existing and new investors, bringing total capital raised to USD 660 million. The round was co-led by Blue Owl Capital and Sixth Street Growth, with Neuberger Berman, SLW, Morgan Stanley, Franklin Templeton, TIAA Ventures, and HarbourVest also participating.
Founded in 2016, Vestwell operates a platform that enables companies to store and manage employee retirement savings, primarily through 401(k) plans. The company partners with independent wealth management firms, human resources services providers, and asset managers to distribute its offering.
Scale and financial performance
Vestwell now serves over two million active users and manages more than USD 50 billion in assets, according to its data. The company reported that it has surpassed USD 200 million in annual recurring revenue and is growing profitably. The latest round follows a USD 125 million Series D closed in December 2023, making the intervening period one of significant commercial expansion for the platform.
The fresh capital is intended to support broader distribution and expand access to more complex, professionally managed investment products, according to the company.
Market context
The US workplace retirement savings market has attracted sustained fintech investment as employers and employees alike seek digital alternatives to legacy pension administration infrastructure. Platforms such as Vestwell sit at the intersection of payroll, benefits administration, and asset management, and have benefited from a broader shift towards consolidating savings and investment tools within a single employer-facing interface. The involvement of established asset managers and financial institutions, including Morgan Stanley, Franklin Templeton, and Neuberger Berman, as investors in this round reflects growing institutional interest in the digital retirement savings segment.
Vestwell's valuation milestone positions it among a small group of fintech platforms that have reached unicorn status within the US retirement and workplace savings space.
