JPMorgan Chase to acquire startup OpenInvest to enhance ESG capabilities

In its third fintech acquisition of the year, JPMorgan Chase announced plans to acquire OpenInvest, an Andreessen Horowitz-backed startup founded by former Bridgewater Associates employees. The company’s tools help financial advisers build, manage, and report on environmental, social, and governance (ESG) portfolios. Terms of the deal were not disclosed.

Why should we care?
The planned OpenInvest acquisition will allow JPMorgan Chase to further customize clients’ ESG investments. ESG is a growing category with assets under management nearing $2T. With JPMorgan Chase, OpenInvest founders hope to bring ESG investing to a broader swath of the U.S. population."Our partnership with JP Morgan combines leading ESG technologies with America's largest bank and the ability to reach nearly half of all American households," Joshua Levin, OpenInvest co-founder and chief strategy officer, said in a statement. From JPMorgan Chase’s point of view, OpenInvest will help advance its strategic focus on sustainable investing, and act as a resource for advisers who want to help clients personalize their investments. The bank said it will tap OpenInvest's ESG capabilities alongside those of 55ip, a wealth management tech firm it acquired in December. The bank’s flurry of recent fintech acquisitions is the result of a more aggressive approach to buying fintechs outlined at the company’s 2020 annual investor meeting.