Andreessen Horowitz’s recent hire of former Jordan Park Group Chief Investment Officer Michel Del Buono suggests the venture capital firm is getting into startup founder wealth management.
The outfit, more commonly known as a16z, confirmed Del Buono’s hire as CIO to oversee those types of services for founders, as first reported by Bloomberg.
TechCrunch reached out to A16z for comment but had not received a response at the time of writing.
Meanwhile, Sequoia’s business unit, Sequoia Heritage, was formed in 2010 and currently manages $16.4 billion, according to Bloomberg. This is just one of the numerous internal programs that the venture capital giant offers to founders.
As Bloomberg notes, wealth management can be a hugely profitable venture once the money comes in the door. Managers charge a percentage of the assets they oversee and profit margins can reach up to 50%.
Andreessen is no stranger to breaking the norm in the venture world. In 2019, Andreessen formally became a registered investment advisor, which meant that the firm no longer had to limit its stakes, including in its general fund.
A16z made headlines for another reason recently when it announced that moving forward, its headquarters will “be in the cloud“. Alongside ditching a centralized HQ, a16z announced new offices in Miami Beach, New York and Santa Monica in addition to its existing Menlo Park and San Francisco posts.
That move was notable in that the storied venture firm was founded in 2009 in Menlo Park and has historically been associated with the Bay Area. It’s also a reflection of how much has changed since the COVID-19 pandemic as more companies and venture firms work remotely.
The firm earlier this year also announced it was building an accelerator for early-stage entrepreneurs, which also may be indicative of its wanting to broaden its offering.