Andreessen Horowitz’s recent hire of former Jordan Park Group chief investment officer Michel Del Buono suggests the venture capital firm is moving into wealth management for startup founders.
The team, better known as a16z, has confirmed the hiring of Del Buono as CIO to oversee these types of services for founders, as first reported by Bloomberg.
TechCrunch has contacted a16z for comment but has not received a response at the time of writing.
Meanwhile, Sequoia’s business unit, Sequoia Heritage, was established in 2010 and currently manages $16.4 billion, according to Bloomberg. This is just one of many in-house programs the venture capital giant offers for founders.
Like Bloomberg Remarks, wealth management can be an extremely profitable business once the money comes in. Managers charge a percentage of the assets they oversee and profit margins can be as high as 50%.
Andreessen is no stranger to breaking the norm in the risk world. In 2019, Andreessen officially became a registered investment adviser, meaning the firm no longer had to limit its holdings, including in its general fund.
A16z recently made headlines for another reason when it announced that in the future its headquarters will be “in the cloud”. Along with the move away from a centralized headquarters, a16z announced new offices in Miami Beach, New York and Santa Monica in addition to its existing positions in Menlo Park and San Francisco.
The move was notable in that the legendary venture capital firm was founded in 2009 in Menlo Park and has always been associated with the Bay Area. It also reflects how much has changed since the COVID-19 pandemic as more companies and venture capitalists work remotely.
Earlier this year, the company also announced that it was building an accelerator for startup entrepreneurs, which may also indicate its desire to expand its offering.