What Formative does

Formative (formerly First Affirmative Financial Network) is a values-based wealth management firm and SEC-registered investment advisor (SEC# 801-56587) headquartered in Colorado Springs, Colorado. Founded in 1989 and rebranded in 2026 after acquisition by YourStake, the firm manages approximately $1 billion in assets across a nationwide network of independent, fee-only financial advisors. Formative serves values-aligned investors—including high-net-worth individuals, faith-based communities, business owners, professional women, veterans, and animal welfare-focused investors—by offering institutional-grade portfolio management combined with deep personalization around client values. The firm is a Certified B Corporation and earned industry recognition including the 2025 Joan Bavaria Award and high advisor satisfaction marks in the 2025 T3 Inside Information Software Survey.

The firm's flagship product is VADIS (Values-Aligned Direct Indexing Solution), a personalized direct indexing strategy that builds portfolios of approximately 230 individual stocks optimized to track benchmarks while reflecting client values across 150+ data points. Supporting offerings include Multi-Manager Accounts and Managed Mutual Fund/ETF portfolios built on proprietary quantitative models and values-based screening methodologies developed over 35+ years. The integrated advisor platform combines VADIS with financial planning, tax planning, estate planning, and insurance analysis, supported by technology integrations with Orion Advisor Technology, Charles Schwab, Folio Institutional, Goldman Sachs, Apex Clearing, and Salesforce. The firm also offers proprietary active shareholder engagement and custom proxy voting on behalf of clients.

Formative operates on an asset-based fee model: revenue is generated through AUM fees charged by affiliated advisors plus subscription/service fees paid by advisors for access to the platform's technology, compliance, and investment management capabilities. The go-to-market strategy combines direct-to-consumer demand generation through a public "Find an Advisor" tool with a channel partner model that recruits independent advisors seeking a full-service values-aligned back office. The advisor network includes Sustainable Advisors Alliance, Envision Wealth Planning, Buttfield & Associates, Communitas Financial, Perigon Wealth Management, AIO Financial, Humane Investing, Fair Planet Advisors, and Seven Generations Investing, among others. VADIS has tripled to $330M in AUM over the past two years, signaling active growth on the platform.

Name

Formative

Legal name

First Affirmative Financial Network, LLC

Website

https://formativefinancial.com

Company type

Private

Founded year

1989

Operating status

Operating

Short description

Formative is a values-based wealth management firm and SEC-registered investment advisor managing approximately $1B in assets through a nationwide network of independent fee-only financial advisors, offering personalized direct indexing and proprietary values-aligned portfolio construction.

Ownership category

akta.pro rank

Product category

Wealth Management

NAICS

Software Publishers (5132), Securities, Commodity Contracts, and Other Financial Investments and Related Activities (523)

SIC

Services-Computer Programming, Data Processing, Etc. (7370), Services-Prepackaged Software (7372)

akta.pro primary industry

Digital Wealth Platforms for Advisors (TAMP/Advisor Tech) (FSAGAEAH)

Keywords

• Values-based wealth management
• ESG investment advisory
• Direct indexing solutions
• Advisor platform services
• Sustainable investment management

Headquarters

HQ city

Colorado Springs

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Technology or R&D, Operations, Marketing or Sales, Infrastructure

Revenue model

1. Assets Under Management (AUM) Fees: Fee-only model where advisors charge clients based on a percentage of assets under management. The company provides wrap fee programs through Goldman Sachs, Orion, and Apex as mentioned in disclosures.
2. Advisor Platform Services: Full-service platform for affiliated advisors including technology stack, compliance support, admin support, and investment management services. Advisors pay fees for these operational services.

Pricing tiers

Go-to-market motion3 records

Distribution channels3 records

Marketing channels7 records

Core offering

Formative is a values-based wealth management firm that provides institutional-grade portfolio management, a proprietary direct indexing solution (VADIS), and a full-service advisor platform to independent fee-only financial advisors and their clients. The firm manages approximately $1 billion in assets using values-aligned screening, ESG criteria, and direct indexing with tax-loss harvesting, while supporting advisors with compliance, technology, and operations infrastructure.

Product overview

Formative (formerly First Affirmative Financial Network) is a values-aligned wealth management firm operating as a unified platform plus integrated services model. The core investment offerings include VADIS (Values-Aligned Direct Indexing Solution), Multi-Manager Accounts, and Managed Mutual Fund/ETF products, all built around values-based investing criteria. The firm provides an Advisor Platform that offers technology stack, administrative support, compliance services, and client services including financial planning, tax planning, estate planning, and insurance analysis. The platform integrates with Orion Advisor Technology for account management, Salesforce for case management, Charles Schwab for custody, and Folio Institutional for performance tracking. The firm manages approximately $1B in assets and serves advisors through a network spanning nationwide locations.

Differentiator

Problem solved

Functional benefit

Products and services

• VADIS (Values-Aligned Direct Indexing Solution) Personalized direct index portfolio strategy delivering market-tracking returns, tax efficiency, and deep values customization in a single managed account. Builds portfolios of approximately 230 individual stocks optimized to track benchmarks while reflecting client values preferences, with tax-loss harvesting, rebalancing, and gains-budget management handled on an ongoing basis.
• Multi-Manager Account Investment account using carefully chosen model managers that integrate values-aligned criteria into investment analysis and selection. Managers incorporate values-based screening policies combined with proprietary research; clients may exclude fossil fuels.
• Managed Mutual Fund/ETF Portfolio Portfolio of fully vetted mutual funds and ETFs that integrate values-aligned criteria into investment analysis and selection. Managers use recognized values-based screening policies combined with proprietary values-aligned investing research.
• Advisor Platform Full-service platform for values-based advisors providing technology stack, administrative support, compliance services, and business development resources. Includes financial planning, tax planning, estate planning, insurance analysis, and portfolio management services. Targets independent, fee-only financial advisors seeking to offload operations and focus on client relationships.

Quantifiable outcome

• VADIS grew to $330M in AUM, having tripled over the past two years
• +3 more outcomes

Named customers11 records

Segments6 records

Ideal customer profiles2 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration4 records

AI capability2 records

Feature4 records

Partnerships

Eight partnerships are on record, tiered core and minor.

• Orion Advisor TechnologycoreTechnology or IntegrationOrion provides the technology platform for advisor and client login portals, enabling account access, balance viewing, quarterly performance statements, invoices, and real-time account information.
• Goldman SachscoreTechnology or IntegrationGoldman Sachs wrap fee program available to clients. Formative offers Goldman Sachs as one of the wrap fee program options with associated disclosures and brochure materials.
• Apex ClearingcoreTechnology or IntegrationApex Clearing wrap fee program available to clients. Formative provides Apex as one of the clearing and custody options with associated disclosures.
• Charles SchwabcoreTechnology or IntegrationSchwab serves as custodian for advisor client accounts. Advisors can access Schwab accounts and transaction statements through the advisor login portal.
• Folio InstitutionalcoreTechnology or IntegrationFolio provides account management platform. Advisors can view Folio account balances and real-time performance history through the portal.
• YourStakecoreStrategic or Co-development PartnerYourStake acquired First Affirmative and relaunched the advisory firm as Formative. YourStake is the parent company and strategic driver of the Formative brand and platform.
• Portfolio Resources GroupminorChannel Partner/ Reseller/ DistributorSome advisors like Joyce Moore operate through Portfolio Resources Advisor Group, Inc., an SEC Registered Investment Advisor, and subscribe to First Affirmative's professional services.
• Securities AmericaminorChannel Partner/ Reseller/ DistributorFair Planet Advisors operates through Securities America, Inc. (Member FINRA/SIPC) and subscribes to Formative's professional services package.

Scale indicators5 records

Recent moves7 records

Expansion highlights6 records

Broad incumbents

• Addepar: Addepar provides wealth management technology and data platform for advisors, family offices, and private banks. Both firms serve advisors with technology-enabled portfolio management, but Addepar focuses on UHNW whereas Formative serves mass-affluent and HNW values-aligned investors.
• Envestnet: Envestnet is the largest turnkey asset management platform (TAMP) serving financial advisors with technology, investment solutions, and operations support. Formative competes on a similar advisor-platform model but with narrower values-alignment specialization versus Envestnet's broad market coverage.
• Parametric Portfolio Associates: Parametric is a leading direct indexing provider offering custom index-based separate accounts with tax optimization. Both offer direct indexing as core product, but Parametric operates at much larger scale under Morgan Stanley ownership versus Formative's boutique, values-specialized position.
• BlackRock iShares Direct Indexing: BlackRock offers direct indexing solutions for advisors through iShares, including custom values-based screens. As the largest asset manager, BlackRock's entry into direct indexing creates significant competitive pressure on boutique players like Formative despite their values specialization.
• Vanguard Personal Advisor Services: Vanguard Personal Advisor is a managed investing service combining robo-advisory with human advisors, including some ESG options. Formative competes for values-aligned investors but Vanguard's brand, scale, and low fees create significant competitive pressure across their target segments.

Emerging players

• OpenInvest: OpenInvest is an ESG/values-aligned investment platform serving advisors and institutions with portfolio analytics, screening, and custom indexing. Both compete in values-aligned investing but OpenInvest emphasizes software/API delivery while Formative offers full-service RIA platform.
• Farther Finance: Farther is a tech-enabled wealth management platform for RIAs providing back-office, investment, and advisory technology stack. Both offer platforms supporting independent advisors with technology and operations, though Farther emphasizes modern advisor experience while Formative specializes in values-aligned investing.

Direct peers

• Ethic: Ethic is a values-aligned direct indexing and custom portfolio platform serving advisors and institutional clients, directly competing with VADIS. Both platforms combine proprietary quantitative models with deep ESG/values customization for advisor-led wealth management.
• Calvert Research and Management: Calvert is a long-standing ESG and values-aligned investment manager (now part of Morgan Stanley) offering mutual funds and separately managed accounts. Both firms have decades-long heritage in values-based investing with institutional-grade research methodologies.

Others

• Orion Advisor Technology: Orion is Formative's core technology partner (portal, account aggregation, reporting) but also operates a TAMP competing for the same advisor relationships. Listed as ecosystem participant given its infrastructure-provider role in Formative's stack despite overlapping advisor-platform ambitions.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat6 records

Key risks5 records

Key highlights6 records

Customer concentration

Compliance4 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Formative