Ric Edelman invests in Aussie financial planning fintech Lumiant

HUNTINGTON BEACH, CA— Ric Edelman has made a minority investment in Australian financial planning software startup Lumiant.

The famed RIA founder announced his stake Monday at Advisor Circle’s Future Proof conference, where he also appeared on a panel discussing digital assets amid what has been a tough year for bitcoin and other cryptocurrencies.

When Citywire sat down with Edelman (pictured right) and Lumiant’s global CEO Santiago Burridge (pictured left) on the sidelines of the beach conference, Edelman explained that Lumiant has positioned itself for success with younger customers by not focusing on detailed financial data but instead on life goals and personal values.

‘[Lumiant addresses] what really matters to the customer. Most customers don’t really care about the numbers. They trust the adviser to focus on the numbers. What the customer cares about is their life. They care about their family. They care about their values, Edelman explained. Luminant’s software innovatively and uniquely helps clients articulate what matters to them about life and establish a plan that focuses on those goals, facilitating their ability to achieve them in an engaging, fun and non-threatening way. It’s a unique experience unlike anything advisors have seen in software of this type.’

The Lumiant platform is built around a values- and goals-based questionnaire that includes non-financial metrics such as aspirational life achievements, not only for the primary client, but also for their immediate family members. The client-facing dashboard and advisor-facing dashboard are identical and aim to help clients develop healthy savings habits and visualize their progress towards their long-term goals.

A “beginner” version of the software costs $250 per advisor per month, while the “professional” version, which includes more detailed financial planning widgets and document storage, costs $500 per month. The company has soft launched in the US, signed on a few development test clients, and plans to roll out publicly to the US RIA community in October.

Burridge said Edelman’s support will help Lumiant hire for its US business team, which currently consists of six employees led by Blake Wood, a former senior VP at Envestnet who joined as managing director of its US division in May. Burridge said hiring efforts will focus on U.S.-based engineers and customer support staff as the firm builds toward another round of funding next year.

The Edelman deal comes just months after Savant Wealth Management announced a $3 million minority investment in Lumiant. Savant remains Lumiant’s largest outside shareholder, Burridge confirmed.

Despite not yet launching to the broader US RIA market, Lumiant has attracted support from major industry figures such as Wealth Consulting Partners president Gavin Spitzner and Merchant managing partner Matt Brinker, who like Savant CEO Brent Brodeski sits on Lumiant’s board.

Interestingly, Burridge said he hopes that Lumiant will prove to be a literal value add for his RIA clients.

“If I’m going to buy, say, Ric’s advisory firm that has Lumiant, I’m going to pay a lot more for that,” he said. “I know everything that’s ever been done for that client. Everything they have dreamed of and everything we have achieved for them is stored in one place. I can pick up Ric’s file of every client and know everything about them. It’s an exponentially more valuable business.’