City grandees pump millions into upstart wealth firm Y Tree
Major City figures have quietly backed a new technology-focused wealth management firm in a multi-million-pound fundraising as it moves to shake up the sector, The Mail on Sunday understands.
Y Tree, whose founders include two former Goldman Sachs bankers, has raised more than £10million in a funding round that was largely backed by its own clients, according to sources with knowledge of the matter.
Its previous backers include City heavyweights Simon Robey, the co-founder of boutique investment firm Robey Warshaw, Paul Walsh, former boss of the drinks giant Diageo and now executive chairman of McLaren, and Alan Stewart, who was finance chief at Tesco.
New firm: Y Tree, whose founders include two former Goldman Sachs bankers, has raised more than £10m in a funding round
It is not known if any of the firm’s previous investors participated in the most recent funding round.
The fundraising comes as Y Tree, which claims to use technology to provide ‘analysis, advice and actionable intelligence’ to help wealthy clients manage their money, pushes ahead with plans to disrupt what it claims is a culture of ‘serial underperformance’ in the sector.
The company has argued that more than 84 per cent of wealth managers ‘persistently underperform’ costing clients hundreds of thousands of pounds a year in losses.
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