Here's the 10-page pitch deck that scored NDVR, a quant investing startup that aims to 'fix wealth management,' $20 million from investors

  • NDVR is a wealth management technology company for high-net-worth retail investors.
  • NDVR recruited its CIO and president from Cliff Assness’ hedge fund, AQR.
  • NDVR came to market earlier this year and has a total of $40 million in capital.

Michael Simon launched NDVR in January on the premise that he wanted to build a new kind of investment firm for high-net-worth investors. One that would, according to him, “fix wealth management.” 

Simon had been a client of major banks like Goldman Sachs, Morgan Stanley, UBS, and even a robo-advisor. But he felt there wasn’t an investment strategy that fit his family planning needs because many of the solutions seemed like one-size-fits-all offerings. So he developed a portfolio management app that customizes portfolios and investment strategies to the needs of wealthy investors.

Boston-based NDVR — pronounced “endeavor”— also applies quantitative investing to portfolios holding between $1 million to $100 million. Quant strategies use computers and algorithmic trading to decide what stocks and other assets to buy, a method typically available to only the largest institutional investors.

Simon and his team believe by adopting what’s usually used at the institutional level and mixing it with automation and customization, high-net-worth investors can better plan for life events like retirement, sending their children off to school, and taking care of elderly parents. NDVR is currently managing $100 million in client assets.

CIO and President Roni Israelov

Simon comes from a technology background. He was the founder of LogMeIn, a remote-work tools provider that was sold to Francisco Partners in 2019. When he started building his NDVR team, he knew he needed finance professionals to round it out. One of those pros was Roni Israelov, NDVR’s president and CIO who left his post as principal at AQR Capital Management, a quantitative hedge fund, to work at the wealth tech startup.

“Our team: it’s a combination of quant PhDs, financial service veterans, and, I think, some innovators from the world of technology that make a lot of what we’re doing possible,” said Simon.

Thanks to the automation of some of its processes, it’s able to provide investment management at 30 basis points, or 0.3%, a price that Simon says costs less than the average assets under management fee which can be as high as 130 basis points, or 1.3%, on a $5 million portfolio. The average AUM fee is around 1%, but it has reportedly ticked up over the years. Robo-advisors like Betterment charge 0.25% for basic portfolio management and 0.40% to add financial planners.

NDVR has attracted big names in the venture capital space as its backers. Karen Pritzker, one of the heirs to the Hyatt fortune, invested through her VC firm, Launch Capital. Polaris Partners led the company’s $19 million Series A and Simon and Polaris led NDVR’s $20 million Series B which closed in July.

Below is the 10-page pitch deck used to score its Series B, bringing the total capital raised to $40 million.