By Valida Pau
July 10, 2024 at 4:00 PM EDT
Earned Wealth, a startup that advises doctors on their professional and personal finances, has raised $200 million in new money with plans to pursue acquisitions.
The financing was led by Summit Partners and Silversmith Capital Partners alongside existing investors Juxtapose, Hudson Structured Capital Management and Breyer Capital, according to a statement reviewed by Bloomberg News. The company didn’t disclose its valuation in the round.
Earned Wealth, founded in 2021, offers medical professionals advice on financial planning, tax planning, wealth management and investing on one interconnected platform. The company raised about $18 million in a 2023 funding round that valued it at close to $40 million, according to data provider PitchBook.
Chief Executive Officer John Clendening said Earned Wealth aims to save physicians the trouble of finding and communicating with different financial advisers.
Doctors can use the platform to consult with wealth management experts on paying off medical school loans or navigating malpractice insurance. Earned Wealth has more than 3,000 clients and $2 billion of assets under management.
In addition to expanding its offerings, the firm is looking to acquire similar businesses that already focus on serving medical professionals, Clendening said.
There were around 1.2 million active physicians and dentists in the US, according to reports in 2022 by the American Medical Association and the American Dental Association.
“We’ve always thought that the financial infrastructure for doctors really lets doctors down,” said Jeff Crisan, a managing partner at Silversmith who has joined Earned Wealth’s board.
In June, Earned Wealth acquired Thomas Doll, a California-based investment adviser to physicians and dentists. The acquisition allows Earned Wealth to extend its services to in-house tax planning and retirement programs, the company said. Thomas Doll is operating as a subsidiary of Earned Wealth.
“Our goal is to become the one-stop shop, the only financial services provider that a doctor needs for their personal wealth, but also for their practice,” Clendening said.
— With assistance from Gillian Tan
