FIDx Raises Growth Capital

Investment round led by Prudential Financial and Global Atlantic, with participation from existing investors

BERWYN, Pa., Nov. 17, 2022 /PRNewswire/ -- Fiduciary Exchange, LLC (FIDx), an integrated technology platform that connects financial professionals to leading insurance companies, today announced that it has secured a new round of growth capital. Prudential Financial, Inc. (Prudential) and Global Atlantic Financial Group (Global Atlantic), two of the nation's leading insurance companies, led the round. Existing investors, including Envestnet, also participated. Financial terms of the transaction have not been disclosed.

FIDx enables financial professionals to seamlessly include annuities as essential building blocks they can easily incorporate into client portfolios. Its core capabilities include tools and services to comprehensively research and illustrate annuities, propose, and open accounts, and ultimately actively manage annuity holdings as part of their household. FIDx has deep relationships with 17 of the most well-known insurance companies, with a wide array of commission-based and fee-based annuity products available. The firm currently has $24 billion in assets on its platform.

"This growth capital will allow FIDx to bring our platform and services to new markets and distribution channels as we help simplify the sale and management of annuities for industry participants," said Rich Romano, CEO of FIDx. "It will enable us to meet the needs of larger distribution firms with billions of dollars in annual annuity sales looking to make FIDx the operating engine of their annuity businesses."

According to LIMRA Annuity Research, the industry is on pace to achieve record sales numbers with almost $300 billion in annuity sales in 2022; however, many financial professionals continue to believe that adding annuities to their clients' portfolios is overly complicated. FIDx's technology platform simplifies the process by removing barriers caused by antiquated technology and disconnected systems.

Prudential and Global Atlantic recognized the importance of streamlining annuity sales and FIDx's integrated platform as a pioneering solution.

"To expand access to retirement security, the industry must continue to evolve, finding new ways to bring protected investment and income strategies to more wealth managers and customers," said Dylan Tyson, president of Retirement Strategies at Prudential. "The FIDx platform addresses a major piece in this puzzle and represents the spirit of innovation that the industry needs."

Paula Nelson, Head of Strategic Growth, Individual Markets, at Global Atlantic, said the annuity industry's existing model does not allow financial professionals to seamlessly access and manage annuities holistically on modern wealth management platforms within the context of their overall client portfolios.  

"Client purchasing expectations today are very different than they were 20, or even 10 years ago, and our industry has ground to make up," said Nelson. "FIDx is helping to bridge that gap by creating an experience where all carriers can place products on a platform that connects directly to financial professionals both where, and how, they prefer to do business."

An early investor in FIDx, Envestnet also believes that the FIDx platform gives financial advisors and their clients powerful benefits. FIDx technology powers Envestnet's Insurance Exchange, which is integrated with Envestnet's leading wealth management platform and solutions, including MoneyGuide and Tamarac.

"We've continued to dedicate resources to expanding our financial wellness ecosystem, and income and protection are an essential part of the future of financial advice," said Bill Crager, CEO of Envestnet. "Allowing the comparison of annuities side by side with managed accounts and other investments gives financial professionals the tools they need to help their clients achieve a connected, intelligent financial life."

About FIDx
Fiduciary Exchange, LLC (FIDx) is a technology-empowered network that seamlessly integrates the brokerage, insurance, and advisory ecosystems to offer best-in-class annuities and insurance solutions from the industry's leading carriers. FIDx enables advisors to offer guaranteed income and downside protection as core components of their clients' portfolios, integrated within the same wealth management platforms they already use every day. An independent technology firm, FIDx connects advisory firms to insurance carriers through a seamless, digitally enabled process so advisors can truly deliver comprehensive advice and help clients reach their goals. To learn more, please visit https://fid-x.com/ and follow FIDx on LinkedIn. Envestnet, Inc. has a financial interest and occupies board of director positions in Fiduciary Exchange LLC (FIDx).

Media Contact:
Dana Taormina
[email protected]

SOURCE Fiduciary Exchange, LLC (FIDx)