OpenInvest will continue to operate under its existing brand upon deal completion. Credit: anncapictures from Pixabay

JPMorgan has agreed to buy San Francisco-based values-based investing expert OpenInvest for an undisclosed amount.

OpenInvest will continue to operate under its existing brand. Upon deal completion in the third quarter, the acquired business will be integrated into the bank’s Private Bank and Wealth Management client offerings.

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A few months ago, J.P. Morgan Asset Management announced the acquisition of fintech firm 55ip, which offers a tax-smart investment strategy engine to support financial advisers.

The bank will eventually use OpenInvest’s ESG capabilities with 55ip’s tax-smart investment strategies to offer tailored solutions to private bank and wealth management customers.

These solutions will be “values-aligned and tax-efficient”, noted the bank.

J.P. Morgan Wealth Management Solutions CEO Michael Camacho said: “OpenInvest will be a powerful resource for our advisers to use in helping clients personalise their investments.”

Established in 2015, OpenInvest provides environmental, social, governance (ESG) investment management products and impact reporting services.

Among the firm’s backers are Andreessen Horowitz, Y Combinator, and QED.

OpenInvest co-founder and chief strategy officer Joshua Levin said: “Our partnership with J.P. Morgan combines leading ESG technologies with America’s largest bank and the ability to reach nearly half of all American households.”

J.P. Morgan Asset & Wealth Management manages over $2.4trn in ESG-integrated assets and $4trn in overall client assets. It caters to institutions, HNWIs as well as retail investors.

The latest deal comes shortly after JPMorgan’s acquisition of British robo-adviser Nutmeg with more than £3.5bn in assets under management and over 140,000 clients.

Nutmeg is expected to complement JPMorgan’s new digital bank, scheduled to launch in the UK later this year.

Financial terms of the transaction were not revealed though reports said that the deal valued Nutmeg at nearly £700m.