NextCapital scores $6 mln

NextCapital has received $6 million in funding. The investors included Russell Investments. Based in Chicago, NextCapital is a provider of portfolio dashboards and wealth-forecasting software for 401(k) managed accounts.


SEATTLE, September 3, 2014 – Global asset manager Russell Investments is one of the lead investors in a $6 million strategic investment in NextCapital (formerly Business Logic), a Chicago-based digital adviser and the technology provider behind the delivery of the Russell Adaptive Investing™ methodology to individual participants in defined contribution (DC) plans.

“DC plans are the primary retirement vehicle for most Americans today, so there is a strong need for continued advancement in retirement savings options that use an outcome-oriented, multi-asset approach and can be customized at the individual level,” said Josh Cohen, managing director and head of institutional defined contribution. “Our investment in NextCapital reflects our commitment to be at the forefront of defined contribution innovation and our belief that Russell Adaptive Retirement Accounts represent the next generation of default investing.”

Added Jeff Eng, director, retirement income solutions, “Russell’s strategic investment in NextCapital will enable the company to further enhance its capabilities in support of Russell Adaptive Retirement Accounts, including the addition of account aggregation technology (ability to tether all investment accounts of an individual so as to obtain a more holistic picture of his or her retirement and be able to provide better advice), embedded auto escalation features and decumulation strategies.”

In 2013, Russell launched Russell Adaptive Retirement Accounts, personalized managed accounts designed to be cost-efficient and easy to use, like target date funds, but that go a step further toward increasing the probability of participants reaching their targeted retirement income goals by creating a customized asset allocation for each participant. In developing Russell Adaptive Retirement Accounts, Russell partnered with NextCapital and used its secure technology platform to bring to life the Russell Adaptive Investing™ methodology that is the foundation of Russell Adaptive Retirement Accounts.

Russell Adaptive Retirement Accounts, which leverage a DC plan’s existing investment options, create customized asset allocations for participants by drawing on information available through DC plan sponsors’ record keepers or human resources systems, including age, gender, salary, current account balance, contribution rate and DB pension benefit (if eligible). These personalized asset allocations are then monitored and adjusted on a quarterly basis – without any hands-on action required by participants – based on how well each participant is tracking toward his or her retirement income goals.

“Selection of a defined contribution plan’s qualified default investment alternative (QDIA) is a critically important decision facing today’s plan fiduciaries. We’re excited to continue working with NextCapital to further enhance our next-generation QDIA option for plan sponsors and participants, in an effort to provide individuals with a greater likelihood that they will achieve their retirement goals,” said Cohen.

About Russell Investments
Russell Investments (Russell) is a global asset manager and one of only a few firms that offers actively managed multi-asset portfolios and services that include advice, investments and implementation. Russell stands with institutional investors, financial advisors and individuals working with their advisors—using the firm’s core capabilities that extend across capital market insights, manager research, portfolio construction, portfolio implementation and indexes to help each achieve their desired investment outcomes.

Russell has more than $279 billion in assets under management (as of 6/30/2014) and works with over 2,500 institutional clients, independent distribution partners and individual investors globally. As a consultant to some of the largest pools of capital in the world, Russell has $2.4 trillion in assets under advisement (as of 6/30/2013). It has four decades of experience researching and selecting investment managers and meets annually with more than 2,200 managers around the world. Russell traded more than $1.6 trillion in 2013 through its implementation services business. Russell also calculates approximately 700,000 benchmarks daily covering 98% of the investable market globally, including more than 80 countries and more than 10,000 securities. Approximately $5.2 trillion in assets are benchmarked (as of 12/31/2013) to the Russell Indexes, which have provided investors with 30 years of smarter beta.

Headquartered in Seattle, Washington, Russell operates globally, including through its offices in Seattle, New York, London, Paris, Amsterdam, Sydney, Melbourne, Auckland, Singapore, Seoul, Tokyo, Beijing, Toronto, Chicago, San Diego, Milwaukee and Edinburgh. For more information about how Russell helps to improve financial security for people, visit or follow @Russell_News.


Find new deal opportunities, super-charge your fundraising efforts and track top managers with VCJ. Get your FREE trial! Or subscribe now!