Ladenburg Thalmann Financial Services Inc. (NYSE American: LTS, LTS PrA, LTSL, LTSF, LTSK, LTSH) (“Ladenburg”), a publicly-traded diversified financial services company, today announced an investment in Newday Financial Technologies Inc. (“Newday”), a San Francisco-based startup focused on delivering easily accessible, low-cost impact investing strategies that align with the values of investors, with a target audience of new investors, especially Millennials.
Newday is the second strategic investment by the Ladenburg Innovation Lab since its launch two years ago, and follows its investment in Track Technologies in July 2018. The transaction reflects the Ladenburg Innovation Lab’s strategy of investing in early-stage companies that seek to capture opportunities shaped by transformative social, economic and cultural trends and adapting the unique tools and solutions developed by these startups for use by Ladenburg’s five independent advisory and brokerage firm subsidiaries: Securities America, Triad Advisors, Investacorp, KMS Financial Services and Securities Service Network (SSN). Financial details of the transaction were not disclosed.
Adam Malamed, Executive Vice President and Chief Operating Officer of Ladenburg, said, “Our strategic investment in Newday further advances the Ladenburg Innovation Lab’s mission of identifying the most important macro-trends that are fundamentally shifting how people think about and consume financial advice, and investing in startups that seek to address these trends. By seeking to help Ladenburg’s financial advisors capitalize on these macro-trends, our Innovation Lab is amplifying our broader mission of aligning Ladenburg’s financial capital, intellectual capital, technology and other growth resources with our financial advisors to drive their success.”
Newday encourages values-based investors to engage more meaningfully in the causes they care most about, including investing in those causes. Newday’s platform allows users to make impact-oriented investments as low as $5 in portfolios designed to align with values such as environmental sustainability, animal welfare and gender equality.
Dan Sachar, Vice President for Enterprise Innovation at Ladenburg and Head of the Ladenburg Innovation Lab, said, “Our investment in Newday reflects our belief that Millennials and the generations that follow will continue to both seek out technology-enabled entry points into the world of investing and prioritize cause- or mission-based investing that aligns with their values. Younger investors want to be engaged citizens of their communities and the world, and Ladenburg and Newday want to help those clients meet this need.”
Founded in 2017, Newday is an institutional asset management organization that its founders Alexander Meek and Anthony Randazzo established as a democratized channel through which investors could align their values with their investment strategy. The firm has seven investment funds oriented around United Nations sustainable development goals:
- Global Sustainable Impact Portfolio;
- Ocean Health Investment Portfolio;
- Climate Action Investment Portfolio;
- Animal Welfare Investment Portfolio;
- Fresh Water Investment Portfolio;
- Gender Equality Investment Portfolio;
- Conscious Leaders Investment Portfolio.
Newday Founder Alexander Meek said, “We’re not only helping our users align their values with their investing strategy, but we’re offering a tangible, technology-enabled solution for virtually anyone to participate. Many of Newday’s users, prior to investing in our portfolios, didn’t feel as though they had any way to make their dollars reflect their values. We are giving them that channel, for an initial investment as little as $5.”
Newday CEO and Founder Douglas Heske commented, “With Ladenburg’s support we aim to continue to be a valued partner for the next generation of investors in the coming decades as much of the accumulated wealth of the baby boomers shifts to their children and grandchildren. Ladenburg is looking to the future intersection of impact investing and financial advice, and we are excited about shaping the future of mission-driven wealth management.”
About Ladenburg Thalmann
Ladenburg Thalmann Financial Services Inc. (NYSE American: LTS, LTS PrA, LTSL, LTSF, LTSK, LTSH) is a publicly-traded diversified financial services company based in Miami, Florida. Ladenburg’s subsidiaries include industry-leading independent advisory and brokerage (IAB) firms Securities America, Triad Advisors, Securities Service Network, Investacorp and KMS Financial Services, as well as Premier Trust, Ladenburg Thalmann Asset Management, Highland Capital Brokerage, a leading independent life insurance brokerage company and full-service annuity processing and marketing company, and Ladenburg Thalmann & Co. Inc., an investment bank which has been a member of the New York Stock Exchange for over 135 years. The company is committed to investing in the growth of its subsidiaries while respecting and maintaining their individual business identities, cultures, and leadership.
About Newday Financial Technologies Inc.
Based in San Francisco, Newday is a technology-enabled asset manager that provides affordable, transparent and easy-to-understand impact investment solutions to the mass market. By investing in socially responsible and sustainable companies, Newday aims to generate competitive return and, most importantly, drive meaningful change in the way companies in our portfolios adopt environmental, social and governance (ESG) practices and policies. In order to be effective in driving positive impact on corporate behavior, Newday adopts an active ownership model, engaging with companies’ decisions as they affect their stakeholders including communities, employees and shareholders.