Purpose Financial

About Purpose Financial

Purpose Unlimited operates as a Canadian financial services company with a technology-centric approach to asset management, wealth management, and banking solutions. Founded by CEO Som Seif, the company officially launched as Purpose Financial in 2017 after its precursor, Purpose Investments, was established in 2013. Seif, an entrepreneur with a background in industrial engineering and investment banking at RBC Capital Markets, previously founded the ETF firm Claymore Investments, which was acquired by BlackRock in 2012. This experience in designing investment products informed his vision for Purpose, which he co-founded alongside Wealthsimple in 2013.

The company's business model is structured around several distinct divisions serving a range of clients from individual investors to financial advisors and small-to-medium-sized enterprises (SMEs). Revenue is generated through asset management fees, technology platform subscriptions, and lending services. A significant milestone occurred in 2017 when OMERS, a major Canadian pension fund, made a strategic investment to accelerate Purpose's growth. Over the years, Purpose has expanded through strategic acquisitions, including Redwood Asset Management in 2016 to add active management expertise, Thinking Capital in 2018 to enter the SME lending market, and CreditGenie in 2019 to enhance its point-of-sale financing capabilities.

Purpose Unlimited's core businesses include: * **Purpose Investments:** This division focuses on asset management, offering outcome-oriented products like mutual funds, ETFs, and alternative investments. It surpassed $1 billion in assets under management (AUM) by 2015 and launched the world's first physically settled Bitcoin and Ether ETFs in 2021. In 2023, it introduced the Purpose Private Asset Platform in partnership with CAIS and Mercer, providing eligible investors with access to institutional-grade private equity, credit, and real estate funds. * **Advisor Solutions by Purpose:** This subsidiary provides a comprehensive technology platform and practice management services for independent portfolio managers and financial advisory firms in Canada. It enables advisors to establish and grow their practices with tools for CRM, portfolio management, and compliance, aiming to streamline operations and enhance the client experience. * **Driven by Purpose:** Formerly Thinking Capital, this arm provides capital to Canadian small businesses. It offers flexible financing solutions and data-driven insights to help SMEs manage cash flow and pursue growth opportunities. * **Longevity by Purpose:** Launched in 2021, this business offers the Longevity Pension Fund, a mutual fund designed to provide lifelong income for retirees, functioning similarly to a defined-benefit pension plan.