Human Interest: A Beacon of Innovation in the 401(k) Sector
Deal News | Aug 04, 2025 | Morgan Stanley (MSCP)
Morgan Stanley Tactical Value has committed up to $50 million to Human Interest, a rapidly expanding disruptor in the 401(k) sector. This investment aligns with Human Interest's Series E funding round, underscoring its market leadership and innovative edge. With investments totaling over $700 million, Human Interest is advancing its goal to modernize retirement savings, having recently reported 71% revenue growth in 2024 and substantial customer engagement through its PartnerConnect platform. The commitment reflects Morgan Stanley's confidence in Human Interest's transformative potential within the retirement industry, aiming to enhance service delivery and eliminate legacy inefficiencies.
Sectors
- Retirement and Pension Industry
- Private Equity
- Financial Technology (FinTech)
Geography
- United States – Human Interest operates within the U.S., providing services to a wide array of businesses across the country, and the investment from Morgan Stanley aligns with U.S-based growth strategies.
Industry
- Retirement and Pension Industry – The industry related to providing retirement solutions, including 401(k) plans, which Human Interest is actively disrupting with innovative services.
- Private Equity – The industry involving investment firms like Morgan Stanley Tactical Value providing capital to companies in exchange for equity, as evidenced by their investment in Human Interest.
- Financial Technology (FinTech) – Human Interest's integration of advanced technology to streamline and modernize retirement services positions it within the FinTech industry.
Financials
- $50 Million – Investment by Morgan Stanley Tactical Value in Human Interest.
- $700 Million – Total primary and secondary financings for Human Interest.
- $24.6 Million – Transaction fees saved by Human Interest for its customers in 2024.
- 71% – Year-over-year revenue growth of Human Interest in 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Human Interest | Target Company | Company | A leading 401(k) provider disrupting the retirement industry with innovative service offerings. |
| Morgan Stanley Tactical Value | Investor | Company | A division of Morgan Stanley Investment Management providing flexible, non-control capital solutions to companies like Human Interest. |
| Marshall Wace | Investor | Company | A previous investor and strategic partner of Human Interest. |
| Baillie Gifford | Investor | Company | A previous investor and strategic partner of Human Interest. |
| BlackRock | Investor | Company | A previous investor and strategic partner of Human Interest. |
| Jeff Schneble | CEO of Human Interest | Person | He provided strategic comments on the investment's impact for Human Interest's growth. |
| David Zhong | Executive Director at Morgan Stanley Tactical Value | Person | David Zhong elaborated on Morgan Stanley's perspective on Human Interest's industry impact. |