Basic Capital

Basic Capital is a New York-based financial technology company providing a retirement investment platform for 401(k) and IRA plans. Founded in 2021 by Abdul Al-Asaad, a former Goldman Sachs executive, the company aims to help American workers build wealth by amplifying their retirement contributions. Al-Asaad's background as a Syrian refugee who later worked in high finance at Goldman Sachs and attended Harvard Business School influenced the company's mission to democratize access to wealth-building tools.

The company's core offering is a financing model that provides supplemental capital for every dollar a user contributes to their retirement account. For every $1 from the user, Basic Capital provides an additional $4, creating a 5x larger investment base that is then invested into diversified portfolios of ETFs and bonds. This structure is designed to function like a "mortgage for retirement," where the user's contribution acts as a down payment. The firm manages the IRA account opening, LLC formation for the investment vehicle, financing, and portfolio management without requiring a credit check. This model allows users to access leverage for long-term compounding, with protections in place to mitigate the risks typically associated with margin loans, such as margin calls.

Basic Capital serves employers by offering a 401(k) platform designed to improve employee recruitment and retention, as well as individual savers through IRA plans. Its business model generates revenue through a combination of an annual management fee of 0.5% of assets, a financing cost on the supplemental capital, and a redemption fee on investment gains at maturity. The company has secured significant venture capital, including a $25 million Series A round, to expand its employer adoption and enhance its offerings.

Keywords: retirement financing, 401(k) platform, IRA financing, leveraged investing, investment financing, wealth building, retirement savings, fintech, employee benefits, defined-contribution plans, alternative investments, portfolio management, financial technology, diversified portfolios, investment leverage, asset management, retirement solutions, employer 401(k), individual retirement account, long-term investing