Secfi secures $550M investment facility to launch “Pre-Wealth Management” financing platform

Secfi, “the first pre-wealth management platform helping startup employees navigate financial decisions from offer to IPO,” announced they have secured a $550 million investment facility from Serengeti Asset Management. The New York-based investment firm, also an early-stage investor in Secfi, is expanding its decade-plus credit franchise into underwriting, selecting and investing in leading private technology companies through stock financings. The $550 million in capital will be used to power Secfi’s business growth to help executives, employees, and shareholders preserve and diversify their wealth.

Founded in 2017, Secfi provides an integrated suite of personalized educational, advisory, and financing tools that compare different strategies for exercising options. These tools include tax modeling, equity intelligence dashboards, exit forecasting, and exercise reporting. Secfi also provides the financial solutions needed for shareholders to unlock liquidity from their shares, enabling private company employees to get the most out of their stock options.

A 2019 study from Charles Schwab indicated that 76% of startup employees never exercised or sold their stock options. Close to half (48%) said they’ve held off due to fear of making financial mistakes. Secfi’s personalized approach pairs clients with in-house advisors who help shareholders navigate complex financial decisions and optimize their equity positions in order to maximize their wealth. The company’s exercise financing platform limits personal risk and covers the exercise costs and taxes, allowing clients to participate in their employer’s success without risking their savings. Clients make no payments against the financing until IPO or a liquidity event.

“We are building technology that helps demystify the often opaque world of equity compensation. Making well informed financial decisions is critical in maximizing equity compensation – we are proud to empower shareholders with the education and financing needed to build wealth for the future. We’re thrilled to partner with Jody LaNasa, Serengeti’s founder. His decades of experience leading credit and underwriting teams at Goldman Sachs and Serengeti will be invaluable as we scale our financing products. With their backing, we believe we can build the leading platform to serve a growing market in need of innovation and liquidity.” – Secfi founder and CEO Wouter Witvoet.

“We are excited to be investing in many of the leading, fastest-growing companies in the world by financing their employees and investors through this innovative, tax-efficient structure. To date, the primary option for an individual seeking cash for their private stock was to attempt to sell in the secondary market. Now they can retain upside of the stock they own while also getting needed liquidity today. Wouter and the Secfi team have developed a fully integrated solution to this problem and we’re thrilled to be their partners.” – Jody LaNasa, Founder & Managing Partner at Serengeti Asset Management.